Bitcoin (BTC-USD) rose around 5% on Monday to hover near $69,000 as investors assessed the fallout from US-Israel air strikes on Iran and subsequent counterattacks in the region.
The token’s gain marked a recovery from a volatile weekend, with strategists pointing to signs of resilience after a brutal five-month stretch for the cryptocurrency.
“Bitcoin’s relative stability has renewed the ‘digital gold’ narrative, as it behaves less like a high-beta tech asset and more like a store of value amid geopolitical stress,” said David Morrison, senior market analyst at Trade Nation.
The world’s largest cryptocurrency dropped to around $63,255 early Saturday immediately following the US and Israeli attacks on Iran. That same day, it climbed above $68,000 as reports spread that Iran’s Supreme Leader Ayatollah Ali Khamenei had been killed.
Ether (ETH-USD) also traded above $2,000 on Monday after tumbling roughly 10% in the wake of the attacks.
“Crypto’s resilience in the face of geopolitical escalation is constructive and suggests room for tactical upside as defensive positioning unwinds,” Fundstrat head of digital assets Sean Farrell told Yahoo Finance on Sunday.
However, the strategist noted that geopolitical sell-offs are typically buyable unless they lead to a more sustained economic impact, in this case through energy markets.
On Monday, crude futures surged, with Brent crude (BZ=F) jumping more than 8% and West Texas Intermediate (CL=F) gaining around 7%.
“Crude remains the critical risk variable, and any further escalation that materially disrupts shipping lanes or energy flows would likely negate this constructive near-term view,” Farrell said.
Bitcoin remains down 20% so far this year after notching a fifth straight month of losses in February.
The token has struggled to find a footing after tumbling from an all-time high of $126,000 in October.
Wall Street has lowered year-end forecasts, with even the most bullish analysts envisioning a scenario in which the cryptocurrency could drop toward $50,000 before rallying in the second half of this year.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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