QCP: Bitcoin shows resilience under pressure, institutions continue to buy to support market sentiment

ChainCatcher news, QCP released today's briefing stating, "Despite the escalating tensions in the Middle East, Bitcoin has yet to show signs of widespread panic. After an initial shock triggered by Iran-Israel related news last Friday, the benchmark cryptocurrency has recovered, bouncing back from a weekly low of $102,800 to $107,000.

The resilient price performance of Bitcoin seems to be supported by ongoing institutional accumulation. Notably, Metaplanet and Strategy have been consistently buying the dips, while the spot Bitcoin ETF has recorded inflows for the seventh consecutive week. The market appears to have regained its footing, especially after Bitcoin managed to hold the key psychological threshold of $100,000 despite experiencing initial shocks.

More broadly, in the face of rising geopolitical risks, the market has shown remarkable calm. Bitcoin's recent implied volatility has remained below 40, while the VIX index hovers around 20. Given the current backdrop, both levels are historically relatively subdued. There has been an inflow of funds into U.S. Treasuries and a range of Asian government bonds, highlighting that the market has not fully shifted to a risk-off mode.

However, cautious sentiment still lurks beneath the surface. Iran's potential blockade of the Strait of Hormuz could trigger a spike in oil prices, and further escalation or direct U.S. military intervention could severely disrupt global risk assets.

There are also views suggesting that these risks may in themselves constitute a structural positive for Bitcoin. With the asset's trading price only about 6% lower than its all-time high, recent price action has reinforced the narrative that Bitcoin adoption is driven by macro turmoil, rising sovereign debt burdens, and geopolitical vulnerabilities."