Bitcoin traded near USD 70,000 on Thursday, extending the consolidation phase that has characterised price action since early February.
The cryptocurrency could remain at risk with sentiment leaning toward caution amid the developments in the Middle East.
Escalating tensions in the region have driven crude oil prices higher, raising concerns about inflation pressures.
In response, US Treasury yields have climbed to multi-week highs, tightening financial conditions and creating a difficult backdrop for non-yielding risk assets such as Bitcoin.
Yet Bitcoin has shown resilience, largely supported by institutional demand. On Wednesday, spot Bitcoin ETFs recorded a third consecutive day of inflows, adding USD 115 million. Last week, BTC ETFs attracted around USD 568 million. Meanwhile, Strategy added nearly 18,000 BTC to its treasury last week, underscoring its ongoing conviction.
Several structural developments may also support longer-term sentiment. Legislative discussions in Washington continue around a comprehensive crypto market framework. Together, these factors could play in favour of cryptocurrencies and help counterweigh the impact of geopolitical tensions.
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