Bitcoin surged to a two-week high near $70,000 on Monday as US and Israeli military operations in Iran entered their third day. The leading cryptocurrency traded around $68,938, up 4.4% in 24 hours, according to CoinGecko. Some platforms briefly showed prices above $70,000 before a pullback. The rally unfolded alongside a rebound in US equities and rising inflation expectations.
Bitcoin had dropped to $63,100 early Saturday after initial reports of bombings in Iran surfaced. Later that day, prices recovered as early reports circulated about the death of Iran’s Supreme Leader Ayatollah Ali Khamenei.
By Monday, buying momentum strengthened across major digital assets. Ethereum gained 3.2% to trade at $2,032. Solana climbed 3.5% to $87, while XRP rose 1.3% to $1.39.
The price swing reflected a sharp reversal from the fear that gripped markets when the conflict began. President Donald Trump stated from the White House that military operations continued at scale. He said US forces were destroying Iran’s missile capabilities on an hourly basis.
When US markets opened on Monday, the NASDAQ Composite initially posted losses. Soon after, the tech-heavy index reversed course and moved higher. By midday, it had gained 0.39%, while the S&P 500 remained flat and the Dow Jones Industrial Average edged lower.
Market participants assessed whether Iran’s remaining leadership would seek a deal with the Trump administration or allow instability to continue. Stephen Coltman, head of macro at 21Shares, said inflation expectations in the United States have risen.
Coltman noted that higher expected inflation, combined with unchanged deposit rates, could drive interest toward scarce assets. If deposit rates stand at 3% while inflation expectations reach 5%, cash loses purchasing power over time. In that scenario, investors may seek alternatives such as Bitcoin.
At the same time, US equities have lagged other global markets this year. IG analysts Chris Beauchamp and Axel Rudolph said investors appear to treat US stocks as a relatively safe haven despite the conflict. They added that stocks may tolerate the war as long as it does not escalate further.
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Bitcoin’s strength coincided with weakness in precious metals. Gold rose 1.3% to $5,300 per ounce, according to Yahoo Finance. In contrast, silver fell sharply by 7% to $88 per ounce.
IG analysts said silver’s reversal and gold’s struggle after early gains could enhance Bitcoin’s relative appeal. They suggested that shifting performance among traditional safe-haven assets may influence capital flows into digital markets.
Meanwhile, Strategy Chair Michael Saylor compared Bitcoin’s recent decline to Apple’s stock performance between 2012 and 2013. Bitcoin has fallen nearly 47% from its October record of $126,000. Apple’s shares dropped 45% during that earlier period despite clear product-market fit.
Saylor described that period as a “valley of death” for Apple before its long recovery through 2020. His comparison raises a pivotal question: Could Bitcoin’s current drawdown mirror a similar long-term trajectory?
Bitcoin climbed near $70,000 as US and Israeli military operations in Iran continued, while Ethereum, Solana, and XRP also advanced. US stocks recovered despite early losses, and inflation expectations rose. Investors now watch whether conflict escalation or easing tensions will shape the next move across crypto and global markets.