Key Points
- Bitcoin rebounds above $69,000 amid strong US ETF inflows and institutional demand.
- Crypto increasingly viewed as hedge alongside gold and oil during geopolitical tensions.
Since February 28, when tensions in the Middle East escalated, Bitcoin has recovered from recent lows amid renewed institutional interest and expectations of supportive US regulation.
The asset’s price movement suggests digital currencies are being positioned alongside traditional hedges rather than treated solely as speculative instruments.
Institutional Flows Support Price Recovery
Bitcoin (BTC) was trading above $69,000 at the time of writing, reflecting a 2% increase over 24 hours.
The rebound follows a decline toward $63,000 on February 28, after which prices regained upward momentum.
US-based spot Bitcoin ETFs recorded inflows exceeding $225 million on March 2, following more than $458 million in inflows on March 1.
February 25 marked the largest daily inflow since the start of last month, surpassing $506 million, with three positive flow days recorded last week.
Ethereum (ETH) also climbed above $2,000, moving in close correlation with assets traditionally considered hedges during periods of geopolitical uncertainty.
Crypto’s Position in a Volatile Macro Environment
Bitget CMO Ignacio Aguirre stated that the parallel performance of digital assets with gold and oil indicates that crypto is increasingly viewed as a complementary hedge.
Spot gold prices surpassed $5,400 on March 2 before retreating near $5,040 the following day, later rebounding above $5,150 on March 4, according to TradingView data.
Crude oil prices rose above $76, gaining more than 2% within 24 hours and reaching their highest level in over a year.
Aguirre noted that oil could approach $100 if supply risks intensify, while US President Donald Trump said the Iran conflict may drive prices higher, as reported by The Washington Post.
Equity markets have experienced volatility amid concerns of prolonged conflict, with capital rotating between risk assets and perceived safe havens, according to NBC News.
Aguirre said that structured capital flows into Bitcoin reflect portfolio rebalancing rather than broad investor retreat.
On March 3, President Trump called for rapid implementation of clear crypto market structure legislation, stating that regulatory clarity is necessary for the industry’s development.
He urged progress on the Genius Act and the Clarity Act, arguing that delays could push innovation to other countries.
Eric Trump also expressed support for crypto regulation, criticizing large banks’ practices and highlighting the sector’s competitive potential.
Despite sentiment indicators remaining in the Extreme Fear zone, institutional flows and regulatory discussions continue to shape the broader market narrative.
