Geopolitical tensions escalated as former U.S. President Donald Trump issued stark warnings against Iran, stating the country "will be hit very hard today" and threatening that previously untargeted areas and groups were "under serious consideration for complete destruction and certain death." This follows a conflict that began the prior Saturday involving Iran, the U.S., and Israel, with Iran's president dismissing Trump's earlier call for unconditional surrender as a "dream."
Bitcoin's price has exhibited significant volatility in response to the unfolding crisis. Initial strikes last week caused a swift drop from $67,000 to $63,000, but the price rebounded to $68,000 the same day, partly on reports of the Iranian Supreme Leader's death. The asset continued climbing mid-week, reaching a monthly high of $74,000 on Wednesday before retreating to around $68,000, influenced by a weak U.S. jobs report and Trump's latest remarks. As of March 7, 2026, BTC was trading steadily near $68,000, though analysts warn of potential weekend volatility given crypto markets' 24/7 operation.
Notably, Bitcoin's price action has diverged from traditional safe-haven assets. While BTC surged past $70,000 during the conflict, gaining over 10% since the strikes began, gold prices declined by nearly 2%. This unusual dynamic has sparked debate among prominent market figures. Economist Peter Schiff warned that a prolonged conflict could eventually pressure stocks, bonds, cryptocurrencies, and the U.S. dollar, while boosting oil and gold. In contrast, billionaire Ray Dalio questioned Bitcoin's safe-haven status, citing its lack of central bank backing and potential future security threats from quantum computing.
On-chain data from CryptoQuant indicates a short-term relief rally may be underway, with selling pressure easing. Demand contraction narrowed significantly from early 2026, and selling by long-term holders slowed to its lowest pace since June 2025. However, the firm's broader outlook remains bearish, with a Bull Score Index of 10/100 and identifying strong resistance in the $79,000-$90,000 range.
