Since the onset of the conflict in Iran, Bitcoin has experienced a slight increase, contrasting with the struggles faced by bonds and stocks. A recent report from CoinShares, a digital asset management firm, indicates that this trend is noteworthy.
As of now, Bitcoin’s price stands at $70,323 after experiencing a 0.8% decline over the last day according to CoinGecko, a cryptocurrency price aggregator. Despite this minor drop, its value has risen since late February when military actions commenced between the U.S., Israel, and Iran.
“Since the crisis began, Bitcoin has appreciated by approximately 6 to 6.5%, while gold’s increase is around 1 to 1.5%, and stock markets have seen declines,” stated James Butterfill, Head of Research at CoinShares in correspondence with Decrypt. “We believe this divergence holds significant analytical importance.”
Butterfill also pointed out that several critical factors coincided perfectly during this period; technical indicators had already suggested that Bitcoin was nearing its lowest point for this cycle.
“Bitcoin often thrives during geopolitical upheavals—not merely despite its volatility but partly due to its characteristics as a non-sovereign and censorship-resistant asset,” Butterfill explained. He further noted that investors withdrawing from U.S. Treasuries indicate traditional safe-haven assets are losing some of their attractiveness.
Treasury yields typically fluctuate inversely with prices; as demand for Treasuries increases prices rise while yields decrease. Currently however, yields are on an upward trajectory indicating investors are retreating from what has historically been viewed as a primary safe haven during crises.
It’s important to note that although there have been consistent outflows from digital asset funds recently; inflows have also persisted according to Butterfill.
“This marks our third consecutive week of net inflows into digital asset investment products,” he mentioned in an email sent to Decrypt, highlighting that investors have contributed $500 million just within this week alone. “We interpret this as an important signal: institutional investors view Bitcoin as an asset worth retaining amid geopolitical uncertainty rather than one they should abandon.”
This does not imply all digital assets will receive equal support compared to Bitcoin though.
CoinShares observed that sectors linked with discretionary spending—such as speculative trading and meme coins—are likely facing significant challenges if household finances remain strained.
“However,” Butterfill added “the political and regulatory momentum supporting stablecoin adoption—especially within the United States—is robustly established and largely insulated from fluctuations caused by oil market dynamics.”