Bitcoin has fallen over the past week, but its declines have been less severe than the broader equity drawdown since the Iran conflict began on February 28.
The move comes as the Iran war entered its fourth week, pushing crude prices higher and contributing to a broader pullback in risk assets by Friday.
U.S. stocks have fallen for four consecutive weeks, with the S&P 500 last week breaking below its 200-day moving average, a key technical level closely watched by institutional investors, for the first time since March of last year.
Both the S&P 500 and the Nasdaq are down about 4% to 5% this month, according to Google Finance data.
Still, Bitcoin’s monthly decline has been more modest than the drop in equities, a shift some market participants attribute to earlier deleveraging in the crypto market and continued institutional participation.
“After undergoing several rounds of deleveraging in recent months, Bitcoin has materially outperformed traditional assets on a risk-adjusted basis since the start of the Iran war,” John O’Loghlen, managing director for APAC at Coinbase, told Decrypt.
He added that as oil becomes “an active transmission channel for global inflation,” the firm is seeing rising institutional inflows into crypto assets and U.S. Bitcoin ETFs.
“There are early signs the crypto market might now be past peak pessimism,” O’Loghlen said. “However, stronger participation will be required for a more durable rally.”
While macro conditions are driving broader market sentiment, experts say the crypto market itself is flashing signs of resilience rather than heavy distribution.
“The crypto market is in a steady consolidation phase, with clear signs of institutional strength and accumulation,” Nischal Shetty, founder of WazirX, told Decrypt.
He added that Bitcoin has been holding support near the lower end of its recent range while facing resistance near recent highs, signalling buyers remain active despite macro uncertainty.
Analysts say the next move for Bitcoin will likely depend on macroeconomic data in the coming week, including flash PMI readings from major economies and further moves in oil prices, which are increasingly shaping expectations for inflation and interest rates.
