Bitcoin prices surged to their highest level since early February, hitting $78,000 on 17 April, following signs of easing Middle East tensions. However, prices fell back to around $74,000 per Bitcoin by the morning of 20 April as the conflict escalated again.
As the world's leading cryptocurrency, Bitcoin rose to its highest level since early February after positive signals from the U.S. and Iran indicated a potential easing of Middle East conflicts.
Bitcoin broke above the upper boundary of its narrow trading range established since the late February war outbreak, soaring past $78,000 for the first time since 3 February, reaching an intraday high of $78,343 — a 4.1% increase — before pulling back.
Investors have increasingly viewed Bitcoin as a risk hedge, enabling it to outperform U.S. equities and gold. According to Bitazza Thailand data, since the attack began on 28 February, Bitcoin has yielded a 12% return, compared to a 2% return on the S&P 500 index and a 9% loss for gold.
According to CoinMarketCap data, Bitcoin prices declined to around $74,470 on 20 April as Middle East tensions persisted. The Strait of Hormuz was closed again despite a ceasefire announcement, maintaining pressure that also pushed oil prices higher.
Derivative market signals reflect continued caution, with the perpetual futures Funding Rate—a key indicator of leveraged trader sentiment—remaining negative. Additionally, high premiums are being paid for put options protecting against downside risks at $60,000 and $50,000 price levels.
Jasper De Maere, an OTC trader at crypto market maker Wintermute, stated, “The market still needs clarity on the Strait of Hormuz situation and ongoing institutional buying to firmly break price ranges. Currently, the direction remains uncertain.”
He added, “A sustained ceasefire would be a highly positive signal for the market. However, if disturbances in the Strait continue weekly, the impact will intensify exponentially, eventually spreading to global supply chains and the economy.”
Meanwhile, Bitcoin has gained new support from Strategy Inc., which purchased $2.6 billion worth of Bitcoin over the past two weeks. Senior derivatives trader Bohan Jiang from FalconX views this buying as significantly stabilizing the market.
Crypto-related stocks also rallied strongly: Strategy’s shares surged 16% last Friday, marking their largest single-day gain since 6 February. Other industry stocks rose as well, with Coinbase increasing up to 8% and Galaxy Digital jumping over 10%.
Earlier that week, Charles Schwab announced plans to offer spot cryptocurrency trading within the year, noting clients could allocate up to 8.8% of their portfolios to Bitcoin. Goldman Sachs filed to launch a Bitcoin ETF, marking a direct entry into the crypto market.
Additionally, Morgan Stanley became the first major bank to officially launch a Bitcoin ETF last week, reflecting growing institutional acceptance of digital assets.
Sources:Bloomberg,The Guardian,BBC
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