Bitcoin rebounds above $67,000 as investors dive back in despite Iran-US conflict — what's driving the surge?

Bitcoin prices rebounded above the $69,000 level on Monday, paring sharp losses from a recent sell-off sparked by escalating tensions between the United States, Israel, and Iran.

After plunging toward the low $60,000s on weekend conflict headlines, the world's largest cryptocurrency regained ground as both retail and institutional investors stepped in amid volatile market conditions.

Altcoins also mirrored the rebound trend alongside Bitcoin, with some major digital tokens such as Ethereum (ETH) and Solana stabilising after recent losses.

How much do other crypto assets gain today?

As a result of the latest swing in cryptocurrency prices, Bitcoin surged more than 5% by 3:41 PM (UTC) on Monday to trade at $69,346.96, as dip buyers returned to the market.

The world's second-largest cryptocurrency, Ethereum or Ether, posted similar gains, rising nearly 6% to $2,051.89 during the session. Solana also advanced sharply, trading at $88.58, up close to 6%, reflecting broad-based strength across major altcoins.

The rally was mirrored in derivatives markets, with the Nasdaq CME Crypto Index climbing 5.6% to $3,347.03 on Monday.

Is BTC back in ‘safe-haven’ category? Expert weighs in

Although Bitcoin's recent price movements have mirrored equities, meaning it tends to fall when stock markets decline, experts believe the digital asset's long-term narrative as “digital gold” remains intact, supported by its positioning as a potential hedge against inflation and macroeconomic uncertainty.

“Considering the pressure on oil prices with the ongoing conflict in the Middle East, inflation is expected to increase in the short term. And as a hedge, both institutional and retail investors are seen moving money into Bitcoin,” said Akshat Siddhant, Lead quant analyst at Mudrex.

What's ahead for the crypto market?

Experts believe that the short-term forecast is highly dependent on credit or demand and risks, based on current conditions. “If tensions keep getting worse and the risk in global capital markets is greater, it will create more selling pressure on Bitcoin,” said Piyush Jhunjhunwala, Founder and CEO of Stockify.

Meanwhile, the founder of crypto exchange WazirX, Nischal Shetty said that institutional investors may jump in to save the day or for further liquidation of leveraged positions.

“But without any current breakdown below structural support levels, there’s no immediate indication of investors trying to reduce risk exposure so soon after the weekend sell off. In case, there’s a movement below the support level with ongoing geopolitical uncertainty, risk tolerance will be a key factor in deciding whether or not investors will look at an exit strategy,” he said.

What should crypto investors do?

Experts said the current volatility is unlikely to impact long-term holders, as short-term price swings typically do not bring much difference in their broader allocation strategy.

However, short-term traders are advised to remain cautious. With geopolitical tensions driving sharp, sudden price swings remain a real risk. “In order to properly manage your risk, prudent position-sizing and stop-loss discipline are a must,” said Jhunjhunwala.

They also warn against emotional trading. Panic selling after a steep fall can lead to a loss that cannot be recovered, while blindly chasing rebounds may lead to fresh setbacks. “A mixed approach may involve scaling out of a portion of your core position into an upward move while maintaining your longer-term conviction in that core position,” Jhunjhunwala advised.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.