Bitcoin's war-linked selloff keeps shrinking as Iran conflict worsens

Bitcoin was the first asset to price the Iran war because it was the only liquid market open when U.S. and Israel first launched their attack on a Saturday a few weeks ago. It dropped 8.5% that day, but two weeks later it has outperformed gold, the S&P 500, Asian equities and the Korean stock market; only oil and the dollar have done better.

Each escalation in the Iran conflict has been larger than the last, but each bitcoin drawdown has been getting smaller. On Feb. 28, the day of the initial strikes, it bottomed at $64,000. On March 2, after Iran's retaliatory missiles hit Gulf states, the floor was $66,000.

By March 7, after a week of sustained conflict, the low was $68,000. After the tanker attacks on March 12, it held $69,400. And after Kharg Island on Saturday, the low was $70,596. Each selloff has found buyers at a higher level than the last, with the trendline of higher lows rising by roughly $1,000-$2,000 per event while $73,000-$74,000 has acted as a ceiling that has now rejected bitcoin four times.

Iran, Kharg Island

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