Bitcoin lost ground in early Asian trade on Friday, trading below the US$70,000 mark as letdown in the Middle East intensified; however, the cryptocurrency is set to rebound strongly in the coming week due to its perceived description as a safe -haven asset. The leading cryptocurrency dropped 3.1% to US$70,182 by 05:56 GMT, a week following the high of US$74,200 in the midweek.
Although it dropped in the day, Bitcoin was up 7.2% in the week, which is compared to the 2.1% decrease in the Nasdaq Composite Index. At the same time, Ethereum declined by 3% to US2069, XRP by 1.8% to US1.39, and meme-based coin Dogecoin fell by a similar figure. In the previous 24 hours, trading volume has risen by 15% to US$85billion, as of 6 March 2026, according to Cornmarket.
Iran Tensions Fuel Oil Shock
The US and Israeli attacks against the Iranian regime, which have escalated to the seventh day, have been met by Iranian retaliation through drone and missile attacks. The Strait of Hormuz, a fragile chokepoint that passes 210% of the world’s supply of crude oil, has a credible threat of blockading and is thus escalating Brent crude to 16.3% per week at US92.50 barrels.
Gold prices fell 0.6% in the week, amidst sustained demand for safe-haven assets, as the index of the US dollar rose 1.2%, delivering a negative influence on risk assets. This conflict recalls 1979 stagflation, according to Katie Stockton, Fairlead Strategies chief strategic officer. She notes Bitcoin holding the US$70,000 level may signal it as digital gold, but warns that limited Fed policy easing may cap Bitcoin’s upside.
Resilient Crypto Amid Chaos
Unlike Bitcoin, Polygon and Cardano fell by 2.5%. Bitcoin’s RSI was 58, showing neutral momentum, with support at US$68,500, suggesting minimal downside risk. CME open interest was US$32 billion.
Outlook: Rebound Ahead?
Long-term animosity may push crude to US$110 per barrel, which could increase annual inflation to 4-5% and delay Federal Reserve policy relaxation unfavorable for equities but favorable for Bitcoin as a hedge. The price is forecast at US$78,000 at month’s end, assuming the Strait of Hormuz remains open, and US institutional confidence continues with ETF inflows of US$2.1 billion per week.