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BTC $68,331.45 -1.47%
ETH $2,057.53 -2.89%
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SOL $81.67 -4.53%
TRX $0.2795 -0.47%
DOGE $0.0974 -3.83%
ADA $0.2735 -4.22%
BCH $467.42 -0.18%
LINK $8.64 -2.97%
HYPE $28.98 -1.81%
AAVE $122.61 -3.42%
SUI $0.9126 -3.10%
XLM $0.1605 -4.62%
ZEC $260.31 -8.86%

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Wintermute: The escalation of the Middle East situation combined with stagflation risks brings a temporary respite to the cryptocurrency market

Cryptocurrency market maker Wintermute stated on social media that the situation in the Middle East has entered its third week of escalation, with Brent crude oil rising 26% over the week. The market has adjusted its expectations for interest rate cuts in 2026 to just one. Against this backdrop, the cryptocurrency market has outperformed all major asset classes except for crude oil, with BTC rising over the week, while stocks, bonds, and gold all experienced declines.In terms of digital assets, BTC rebounded about 10% from Monday's low, marking seven consecutive days of gains, and has regained the $71,000 level; ETH followed suit and maintained above $2,000. The Coinbase BTC premium indicator has reset, as the structural pressure of discount that persisted for months has dissipated. The spot Bitcoin ETF recorded its first consecutive five-day net inflow in 2026, totaling $767 million, with $251 million flowing in on Monday alone, led by IBIT; the Ethereum ETF saw a net inflow of about $160 million over four consecutive days.Strategy has increased its holdings by 1,360 BTC; Bitmine announced the purchase of ETH for $128 million, with the Ethereum Foundation selling 5,000 ETH directly to it through over-the-counter trading. The implied volatility index for BTC (DVOL) has compressed from 61 to 51, and the correlation between BTC and stocks has also significantly weakened.On the macro front, core PCE annualized at 3.1%, non-farm payrolls showed a decrease of 92,000, and the unemployment rate rose to 4.4%, with stagflation becoming the baseline scenario. This week, the Federal Reserve, European Central Bank, Bank of Japan, and Bank of England will announce their interest rate decisions on the same day, marking the most concentrated macro event in recent months.

Analysis: Bitcoin outperforms gold and the stock market amid global turmoil, with ETF and Strategy increasing accumulation

According to CoinDesk, Bitcoin and Ethereum have recently outperformed gold and global stock markets, highlighting the demand for safe-haven assets amid geopolitical tensions. Wall Street brokerage Bernstein pointed out that the resilience of Bitcoin reflects a fundamental change in its ownership structure, with institutional investors dominating the market.In terms of institutional holdings, Strategy is referred to as the "last central bank of Bitcoin," continuously buying Bitcoin during market downturns. Recently, it increased its holdings by 22,337 BTC at an average price of about $70,194 each, bringing its total holdings to 761,068 BTC, with an average cost of about $75,696. Analysts noted that Bitcoin's recent performance under geopolitical pressure has reignited discussions about its role as "digital gold."Strategy's stock (MSTR) is currently trading at about a 14% discount to Bitcoin's net asset value, providing stock market investors with a high-beta way to participate in Bitcoin's rise. Through high-yield financing offered by the STRC product, Strategy further gained liquidity to support market purchases.At the same time, spot Bitcoin ETFs have attracted about $2.1 billion in inflows over the past three weeks, accounting for approximately 6.1% of the total supply, with institutional investors including wealth management firms, pension funds, and sovereign investors. Retail investors have recently shown net selling, but the proportion of long-term holders remains high, with about 60% of Bitcoin not moving in a year, indicating the continued existence of its long-term value storage properties.

QCP: BTC and ETH strengthen amid geopolitical tensions, stablecoin supply hits a new high

QCP released the latest market report indicating that against the backdrop of ongoing geopolitical tensions, the cryptocurrency market has shown relative strength, with Bitcoin and Ethereum breaking through $74,000 and $2,270 respectively, while stocks and gold assets remain under pressure during the same period. The report believes that this trend is reinforcing the narrative of "digital safe-haven assets" and "geopolitical hedging tools."QCP stated that tensions related to Iran may drive an increase in on-chain activity and cross-border liquidity demand. Data shows that last week, the supply of USDC rose to a historical high of approximately $81.1 billion, with overall stablecoin supply increasing simultaneously, indicating new inflows into the cryptocurrency market amid global uncertainty.Institutional demand has also shown signs of recovery. Bitcoin ETFs have seen net inflows for five consecutive trading days, with BlackRock's ETF recording inflows for the third consecutive week, totaling approximately $1.75 billion. Meanwhile, Strategy continues to increase its Bitcoin holdings.In the options market, spot prices are approaching the important end-of-month strike price BTC-27MAR26-75K-C (approximately 8,000 contracts). The report notes that if the price effectively breaks through $75,000, it may trigger a rally driven by the Gamma effect, while $74,500 remains a key short-term resistance level, with a dense area of short liquidations above.
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