Rising despite war risks... Why is Bitcoin holding up?

▲ Bitcoin (BTC) ©Go Da-sol

Despite the re-escalation of Middle East tensions, Bitcoin has held firm near $76,000, proving its 'crisis resilience'.

According to investment media FXLeaders on April 20 (local time), Bitcoin (BTC) has maintained a rebound below $76,000 even after experiencing a correction of over 4% last weekend, and Ethereum (ETH) is also holding above $2,300, indicating a general upward trend across major cryptocurrencies.

Across the broader market, most cryptocurrencies including XRP (Ripple), Solana (SOL), Cardano (ADA), Dogecoin (DOGE), and Chainlink (LINK) showed an upward trend, demonstrating relative strength compared to risk assets. However, Hyperliquid and TRON (TRX) saw exceptional weakness, falling by approximately 2.4% and 1.6% respectively.

Increased volatility over the weekend led to a massive short squeeze. As Bitcoin surged to around $78,000, liquidations totaling approximately $762 million occurred, of which about $593 million came from short positions. A total of 168,336 traders were affected, marking one of the largest liquidations this year.

The direct catalyst for price fluctuations was geopolitical risk. International oil prices surged following reports that the United States attacked an Iranian cargo ship, and market uncertainty expanded as Iran again closed the Strait of Hormuz. Adding to this, tensions escalated as Iran refused further negotiations with the US, and President Donald Trump continued with hawkish statements.

Nevertheless, the market is reacting differently than before. Analysts suggest that cryptocurrencies may have already priced in a significant portion of extreme geopolitical risks. Indeed, despite this being the fourth major Middle East shock, the decline was limited. This is interpreted as either selling pressure being largely exhausted or continuous institutional demand, particularly centered around Bitcoin spot ETFs, supporting the downside.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*