Published Wed, Mar 4, 2026 · 06:38 PM
[LONDON] Crypto markets rebounded on Wednesday (Mar 4), recovering from a sell-off triggered by the escalating conflict in the Middle East and shaking off pain in other asset classes.
Bitcoin rallied as much as 5.6 per cent to briefly surpass the US$71,812 mark in morning trading in London, hitting its highest value in nearly a month. Ether also surged – up as much as 6 per cent to US$2,086 – with cryptocurrencies forming a sea of green.
The world’s largest cryptocurrency had weathered a rocky few days since US and Israeli forces attacked Iran on Saturday, at one point dropping as low as US$63,038 that day. Since then, investors have largely rallied around digital assets, with spot Bitcoin exchange-traded funds in the US raking in more than US$680 million in inflows on Monday and Tuesday, according to data compiled by Bloomberg.
“This is a victory for cryptocurrencies, given the impressive sell-off those financial markets and gold experienced the day before,” said Alex Kuptsikevich, chief market analyst at FxPro. “Perhaps some traders are looking at crypto as a safe haven.”
Asia’s benchmark index plunged the most in nearly a year on Wednesday, led by a record sell-off in South Korean equities. Futures for US stock indexes also fell across the board, while Europe’s Stoxx 600 rallied slightly. Gold briefly traded below US$5,000 per ounce on Tuesday, before rebounding slightly to trade above US$5,160 on Wednesday morning.
“Sentiment remains highly wary on financial markets as investors assess the latest developments in the Middle East and brace for fresh turbulence,” said Susannah Streeter, chief investment strategist at Wealth Club.
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Despite Wednesday’s rebound, crypto markets remain on edge, with Bitcoin still about 40 per cent below its October peak following a prolonged sell-off.
“We still consider the situation too fragile to say that the bottom has been reached,” Kuptsikevich added. “Bitcoin is vulnerable due to the increased volatility of stock indexes, which is forcing institutional investors to reduce their leverage.” BLOOMBERG
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