Bitcoin, the world’s largest cryptocurrency by market capitalisation, has emerged as a relative safe haven since the outbreak of the war with Iran at the end of February 2026. While crude oil has surged more than 40 per cent, gold is down approximately 5 per cent for the month, and the MSCI World Index has fallen 4 per cent, Bitcoin pushed through the US$75,000 mark on 17 Mar 2026, taking its gains since the conflict began to nearly 14 per cent.
Figure 1: Bitcoin token representing the leading cryptocurrency amid rising investor interest [Courtesy: Freepik]
The token was last trading at around US$74,700 at the time of reporting. Understanding how bitcoin affects investors requires looking beyond the price move itself and into the mechanics driving it, from institutional buying patterns to options market dynamics that have created supportive upward flows.
Bitcoin’s Resilience Against a Volatile Market Backdrop
A Sharp Contrast to Equities, Gold, and Oil
The cryptocurrency trends 2026 narrative has taken an unexpected turn with Bitcoin’s performance during the Iran conflict. Rather than selling off alongside risk assets, Bitcoin has held firm and advanced, drawing comparisons to traditional safe haven assets while those same assets have struggled.
This marks a significant contrast to Bitcoin’s performance in October 2025, when the token’s value halved from a high above US$126,000. A tentative recovery that began in late February 2026 amid geopolitical uncertainty has since gathered pace, with crypto traders returning to exchange-traded funds in meaningful volume.
Institutional Buyers Absorbing Supply on Every Dip
Rachael Lucas, analyst at BTC Markets, attributed Bitcoin’s stability to structural rather than narrative-driven forces. She noted that institutional buyers, particularly corporate treasuries, have been absorbing supply on every price dip, providing a consistent floor beneath the market.
US-traded spot Bitcoin exchange-traded funds have recorded approximately US$1.5 billion in inflows this month, according to Bloomberg data. This institutional participation is a defining feature of cryptocurrency trends 2026 and a key part of understanding how bitcoin affects investors who are watching the asset class from the sidelines.
The Options Market Mechanics Behind the Rally
Unwinding of Bearish Bets Fuelled the Price Move
Markus Thielen, head of research at 10x Research, identified the options market as a significant driver of Bitcoin’s recent rally. He noted that the move was partly driven by traders unwinding bearish positions that had anticipated Bitcoin falling below the US$55,000 to US$60,000 range.
Figure 2: Markus Thielen, head of research at 10x Research [Courtesy: LinkedIn]
Mr Thielen stated that the closing of Bitcoin put options reduces downside hedging pressure and forces market makers to buy Bitcoin to rebalance their exposure, creating supportive flows that push prices higher. Approximately US$1.5 billion of Bitcoin puts are clustered around US$60,000, while US$1.3 billion of calls sit at US$75,000, according to data from derivatives platform Deribit.
From Structural Recovery to Momentum Trade
Hayden Hughes, managing partner at Tokenize Capital, described Bitcoin’s initial recovery following the conflict as backed by genuine positioning. He noted that what began as a structurally supported recovery has since transitioned into a momentum trade, with original edge holders having already taken profit.
Bitcoin briefly fell as low as US$63,038 when the United States and Israel initiated a bombing campaign against Iran on 28 Feb 2026, before staging the recovery that has carried it to current levels. For those tracking how bitcoin affects investors in real time, the shift from structural recovery to momentum-driven trade is an important distinction when assessing near-term risk.
Signals Pointing to Continued Demand
Perpetual Futures and Coinbase Premium Indicate Strong Buying
Beyond the spot price, several market indicators point to sustained demand for Bitcoin. Perpetual futures for Bitcoin are showing a positive funding rate, which requires traders holding long positions to pay a fee to those who are short. This is typically a sign of bullish market sentiment.
Figure 3: Investor holding Bitcoin tokens, reflecting growing retail participation in crypto markets [Courtesy: Freepik]
The Coinbase premium on Bitcoin’s price, which measures the difference between Bitcoin’s price on Coinbase relative to other exchanges, is currently elevated, indicating strong demand from United States-based buyers. Strategy Inc., a Company that buys and holds Bitcoin as a treasury asset, has also recently added to its holdings, reinforcing the institutional demand picture that is central to cryptocurrency trends 2026.
Industry Outlook
Cryptocurrency trends 2026 have been shaped significantly by the geopolitical environment, with Bitcoin’s relative stability during the Iran conflict drawing fresh attention from institutional and retail investors alike. The influx of approximately US$1.5 billion into US-traded spot Bitcoin exchange-traded funds this month reflects a maturing investor base that is increasingly treating digital assets as a legitimate portfolio allocation rather than a purely speculative instrument. How bitcoin affects investors going forward will depend heavily on whether institutional participation continues to provide a structural floor beneath the market, and whether the geopolitical uncertainty that has driven safe haven demand persists.
Future Direction and Impact
Bitcoin’s performance since the Iran conflict began has reinforced its growing relevance within broader portfolio discussions, particularly as traditional safe haven assets such as gold have underperformed during the same period. The cryptocurrency trends 2026 story is no longer simply about price speculation. It is increasingly about institutional flows, ETF inflows, and the mechanics of a maturing derivatives market.
For investors monitoring how bitcoin affects investors across different asset classes, the next key test will be whether Bitcoin can hold above the US$75,000 level if geopolitical conditions begin to stabilise and risk appetite returns to equities and commodities. A reversal in the Iran conflict situation could reduce safe haven demand across all asset classes, including digital assets, making the current momentum-driven phase one to watch carefully.
Frequently Asked Questions
Q1. Why has Bitcoin stayed stable during the Iran conflict?
Ans. Bitcoin has been supported by institutional buying, ETF inflows, and the unwinding of bearish positions, creating a strong price floor.
Q2. How much has Bitcoin gained during the conflict?
Ans. Bitcoin has risen nearly 14% since late February 2026, briefly crossing the US$75,000 level.
Q3. How is Bitcoin performing vs traditional assets?
Ans. It has outperformed gold and global equities, which have declined during the same period.
Q4. What do cryptocurrency trends 2026 indicate?
Ans. They show rising institutional participation, strong ETF inflows, and growing acceptance of digital assets.
Q5. Could Bitcoin fall if tensions ease?
Ans. Yes, easing geopolitical risk could reduce demand and put pressure on current price levels.
Disclaimer
This article is intended for informational purposes only and does not constitute financial or investment advice. All content is based on publicly available reporting from Bloomberg News dated 18 Mar 2026 and statements from analysts at BTC Markets, 10x Research, and Tokenize Capital. Cryptocurrency markets are highly volatile and speculative in nature. Past performance is not indicative of future results. Readers should conduct their own research and seek independent financial advice before making any investment decisions. Colitco does not hold any position in the assets or organisations mentioned.
Sources
Yahoo Finance — Bitcoin Surprises as Oasis of Calm While Iran War Jolts Markets, 18 Mar 2026 https://finance.yahoo.com/news/bitcoin-surprises-oasis-calm-while-073045212.html
