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Bitcoin (BTC), the market leader, which had plunged to $66,000 amid escalating geopolitical tensions in the Middle East and massive outflows from exchange-traded funds (ETFs), is gradually attempting to rebound from the shock. Although short-term price volatility appears unavoidable, growing optimism that the failure of the existing monetary system could instead accelerate long-term adoption of digital assets is drawing market attention.

According to DL News on March 8 (local time), Bitcoin is currently trading at $67,308 and is slowly recovering toward the $70,000 level. Experts remain divided over the market’s short-term direction, with optimists expecting bullish sentiment to resurface and pessimists warning of further declines due to a prolonged Middle East conflict. John Haar, Managing Director at Swan Bitcoin, noted that during periods of heightened geopolitical volatility, Bitcoin tends to behave like a high-beta risk asset similar to tech stocks in traditional financial markets.

Recent price movements have been largely influenced by traditional institutional capital flowing through spot exchange-traded funds. Orkun Mahir Kılıç, co-founder of blockchain firm Citrea, analyzed that these funds serve as a key gateway channeling traditional capital into the market. According to data from Farside Investors, BlackRock’s IBIT attracted more than $900 million over the first three days of the week, but as uncertainty increased on Friday, $143.5 million flowed out, contributing to total outflows of $349 million across all Bitcoin spot ETFs.

Such institutional capital withdrawals, along with Iran-related risks, could exert strong downward pressure on the market. Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, warned that the Middle East crisis could drive Bitcoin’s price down to $50,000. He also added that even silver, widely regarded as a safe-haven asset, could fall to $50 per ounce from its recent highs.

Nevertheless, industry experts are paying close attention to the long-term adoption potential underlying these short-term macroeconomic shocks. John Haar emphasized that over the medium to long term, Bitcoin’s price will be determined by its intrinsic monetary characteristics and growing adoption. Jordan Jefferson, founder of the MyDoge wallet, explained that crises such as sanctions, bank freezes, and currency failures strongly demonstrate the necessity of permissionless financial infrastructure.

Jefferson pointed to past examples in the Middle East, noting that when traditional financial systems fail, citizens instinctively turn to digital assets as a solution. In particular, when the Lebanese lira collapsed in 2019 and banks blocked deposit withdrawals, cryptocurrencies such as Bitcoin emerged as the only viable means of transaction and store of value, leading to a surge in adoption.

*Disclaimer: This article is for investment reference only and assumes no responsibility for investment losses resulting from its use. The content should be interpreted solely for informational purposes.*

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