The military conflict in the Middle East that erupted last week initially did not deal a serious blow to Bitcoin. At one point, the price dropped to the region of $BTC 000, but quickly rebounded. There was no deep crash — the asset continues to trade within the established range without clear attempts to break upward or downward. 🔼 At the same time, it is interesting that amid escalating hostilities, the assets of spot Bitcoin ETFs continue to grow. Data on inflows and outflows show that throughout the past week, there was a positive trend in capital inflows. Despite Bitcoin being traditionally considered a risky and volatile instrument, the media increasingly promotes the thesis of its resilience as “digital gold” and a potential hedge against risks. 💬 There are several reasons for this rhetoric. Many market participants expect that the U.S. military campaign is controlled and does not pose long-term threats to the global economy. Moreover, a prolonged conflict is disadvantageous for America itself, so it is expected that the confrontation could end within the coming weeks. Against this backdrop, there are assumptions that Bitcoin will not suffer significantly and may even show confident growth after the conflict ends. However, such expectations seem debatable. The volume and structure of the Bitcoin market currently do not allow it to fully serve as a safe haven asset. Also, a mass capital outflow from traditional “safe havens” currently seems unlikely. The crypto market is now entirely dependent on global geopolitics. Military actions create risks of supply disruptions in oil, which pushes prices upward. Rising energy costs stimulate inflation, reducing the likelihood of a quick easing of the Federal Reserve’s monetary policy. ➡️ Therefore, if the conflict drags on, pressure on the crypto market could intensify, even despite Bitcoin’s current relative stability. And if world leaders do not reach agreements in the near future, it will be difficult for the asset to maintain its positions — the risk of decline will remain relevant. $63