Bitcoin is holding around $71,000 even as tensions in the Middle East escalate, remaining higher on the week as investors look ahead to the upcoming Federal Reserve policy meeting on March 17–18.
The world’s largest cryptocurrency was trading near $71,000 early Saturday, down roughly 0.7% over the past 24 hours after U.S. forces struck military targets on Kharg Island. The island serves as Iran’s main oil export hub, making the development a significant escalation in the ongoing conflict.
Bitcoin had earlier climbed to $73,838 on Friday before retreating following the news. The roughly 3.5% pullback was sharp but limited, suggesting markets are becoming more resilient to geopolitical shocks that might previously have triggered deeper sell-offs.
Despite the reversal, the broader crypto market remains higher on the week. Bitcoin has gained about 4.2% over the past seven days. Ether has risen roughly 5.5% to $2,090, while Dogecoin is up around 5%. Solana has climbed 4.2% to $88 and BNB has added about 4.5% to $655.
The gains suggest traders are gradually adapting to the geopolitical backdrop. During the early phase of the conflict, markets reacted sharply to every headline as participants struggled to price in the potential risks. More recently, a pattern has begun to emerge in which military developments push oil prices higher, bitcoin briefly declines, and then stabilizes.
Even so, the $73,000–$74,000 range remains a strong resistance zone. Bitcoin has attempted to break through that level four times in the past two weeks but has been rejected each time.
Fresh uncertainty entered the market after comments from Donald Trump late Friday. Writing on Truth Social, Trump said oil infrastructure had been spared “for reasons of decency,” but warned that decision could change if Iran continued interfering with shipping through the Strait of Hormuz.
Iran responded by warning that any attacks on its energy facilities would prompt retaliatory strikes against U.S.-linked infrastructure in the region. Such an escalation could deepen the supply disruption that the International Energy Agency has already described as the largest in history.
Crypto derivatives markets reflected the volatility of Friday’s trading. Around $371 million in positions were liquidated over the past 24 hours. Short liquidations accounted for approximately $207 million, exceeding the $163 million in long liquidations. This indicates that bearish traders were squeezed during the rally toward $73,800 before the Kharg-related reversal forced recently opened long positions to unwind.
Market attention now shifts to the Federal Reserve’s upcoming policy meeting.
With oil prices trading above $100, a major global energy supply disruption underway, and the conflict entering its third week without a clear resolution, concerns about stagflation are increasingly entering the market narrative.
According to the CME Group’s FedWatch tool, traders still assign more than a 95% probability that the Fed will keep its benchmark interest rate unchanged in the 3.5%–3.75% range.
However, the central bank’s updated projections and comments from Fed Chair Jerome Powell may prove more important than the rate decision itself. Any indication that policymakers could consider renewed rate hikes would likely pressure risk assets, including cryptocurrencies, which have spent months anticipating rate cuts that have yet to materialize.
