The cryptocurrency market remained volatile on March 1st, following US and Israeli strikes in Iran that reignited geopolitical instability in the Gulf region. Bitcoin initially fell sharply before beginning a technical rebound, amid heightened investor caution.
Following the announcement of the joint military operation on February 28, Bitcoin lost as much as 3,8%, briefly falling below $63,000. According to CoinGecko data, the total crypto market capitalization contracted by $128 billion in a matter of minutes amid massive liquidations.
Technical rebound but persistent uncertainties
On the morning of March 1st, Bitcoin rebounded to $68,196 on the London market before settling back to around $67,000. Hayden Hughes, a partner at Tokenize Capital, believes this movement was primarily a technical adjustment following the initial correction. The true trend could emerge with the reopening of US markets and Bitcoin-backed ETFs.
Analysts point out that regional tensions, particularly the risks surrounding the Strait of Hormuz and the threat of escalating conflict, could continue to fuel volatility. Flows into Bitcoin ETFs will be closely watched: a sharp reversal could push the price back towards the $63,000 support level.
In the derivatives market, Deribit data shows a high concentration of put options around $60,000, indicating increased demand for hedging. Meanwhile, call options are trading around $75,000, reflecting a bullish outlook among some investors.
For the time being, specialists recommend caution, believing that markets remain sensitive to geopolitical developments as well as to upcoming monetary policy decisions by the US Federal Reserve.
