Is Bitcoin breaking out? BTC rises to $71K as investors return to crypto amid Middle East conflict

Bitcoin has risen above 71,000 on Wednesday as crypto markets rebounded, recovering from a sell-off triggered by the escalating conflict in the Middle East.

Bitcoin rallied as much as 5% over the past 24 hours, briefly pushing above 71.5K, its highest level in nearly a month. Ether is trading around 6% higher near $2,050, while most major cryptocurrencies are in the green. The broader cryptocurrency market capitalisation has climbed 4.6% to $2.4 trillion.

Bitcoin and the wider crypto market have experienced sharp swings in recent days. After the US and Israel launched strikes on Iran over the weekend and Tehran retaliated, BTC briefly dropped to around 63k. Since then, buyers have stepped back in, helping prices recover even as traditional risk assets have struggled.

Institutional demand in the US has also picked up. Bitcoin ETFs recorded more than $680 million in inflows across Monday and Tuesday alone. After four consecutive months of net outflows, March appears to be starting on a stronger footing.

Bitcoin’s rebound has come even as global equities have come under pressure. South Korea’s Kospi dropped 11% overnight, while Wall Street closed more than 1% lower. The divergence has led some traders to speculate that investors may be rotating into digital assets as a hedge during periods of geopolitical uncertainty.

Is Bitcoin returning to a store of value?

Bitcoin has often been referred to as “digital gold”, an asset that could potentially offer protection during turbulent periods. However, that narrative struggled to hold up earlier this year as Bitcoin declined for five consecutive months while gold surged to record highs. This month, though, the picture has shifted slightly: Bitcoin is up more than 6% in March, while gold has slipped around 1.4%.

Gold is facing headwinds from rising Treasury yields as markets price in stronger inflation risks driven by higher oil and energy prices.

Despite the recent rebound, Bitcoin still trades roughly 40% below its October record high after a prolonged five-month sell-off. That gap compared with other asset classes could leave room for further recovery if sentiment improves.

However, the outlook remains fragile. Elevated volatility in global equities could force institutional investors to reduce leverage and reposition portfolios. At the same time, rising Treasury yields draw capital toward interest-bearing assets, potentially limiting upside for non-yielding assets such as Bitcoin and gold.

BTC technical analysis 

  BTC is breaking out of the falling channel that has been in place since the start of February. Buyers supported by the RSI above 50 will look to rise meaningfully above the key 71k resistance to create a higher high and extend gains towards 75k, the round number and the 50 SMA. Above here, attention turns to 80k.

Failure to settle above 71k could see the price re-enter the falling channel and test 65k support. A break below 63k, the lower band of the channel, brings 60k, the 2026 low, into play. 

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