On March 3, Bloomberg reported that Bitcoin has long been touted as offering something other markets can't: a 24/7 barometer of global risk appetite. However, after news of the US strike on Iran broke, Bitcoin initially fell, then fluctuated before ultimately rising. By Monday, its price was above pre-attack levels, leaving almost no trace of sustained panic or safe-haven demand.
This price action reflects deeper issues. After falling approximately 50% from its all-time high, Bitcoin has been consolidating in a narrow range of around $60,000 to $70,000. Since the crypto market crash last October, most leverage has been forced out. Retail participation has decreased, and capital inflows have weakened. With overall positioning lighter, the subsequent impact of new shocks is also smaller.
