Bitcoin (BTC) rose above $74,000 during the Asian trading session on 16 Mar, suggesting a potential shift in investor behaviour after weeks of limited price movement. While the asset has tested this threshold previously, it marks a highwater level not seen since 4 Feb and coincides with the violent turmoil in the Middle East. During the same trading session, Ether (ETH) surpassed the $2,200 mark, continuing a seven-day upward trend for the second-largest cryptocurrency.
Bitcoin Brushes Off Conflict as Funds Attract Flows
16 March 2026 - 09:09 CET
The recent price action appears to be occurring alongside a notable change in institutional sentiment towards regulated crypto products. The five-day inflow streak into US-listed Bitcoin ETFs, a first for 2026, may be providing a degree of price support, though the precise relationship between these flows and geopolitical events is debatable. The resurgence in demand for these products follows a challenging start to 2026, where high inflation and slowing growth targets favoured a migration towards more traditional risk-averse assets.
Shipping movements and geopolitical signals
The narrative on the ground is shifting as President Donald Trump continues to signal that communications with Tehran are not entirely closed. On 16 Mar, two gas tankers from India transited through the Strait of Hormuz, despite the waterway officially remaining a restricted zone. This development may indicate that Iran is granting leeway to certain neutral trade partners. While the situation remains volatile, the Strait of Hormuz remains the most critical choke point for global energy markets as a conduit for about 20% of seaborne gas transportation and an even higher proportion of crude oil. Any perceived easing of the maritime blockade could alleviate some pressure on global supply chains that has been building since the conflict began.
ETF activity and institutional barometers
The net positive inflows into spot crypto ETFs represent the first significant streak of its kind this year. These products typically serve as a barometer for professional demand, and the current five-day run suggests that the liquidations seen in January and February might be subsiding. Ether (ETH) products are showing a similar net positive trend over the last four days, indicating a broader interest in digital assets that extends beyond Bitcoin (BTC). These inflows are particularly noteworthy given that core inflation in the US remains persistently high and growth targets for the fourth quarter of 2025 were recently adjusted downwards.
While the current rally offers a respite for traders, the underlying economic headwinds are significant. Commodity markets continue to show high levels of volatility, and the ripples of the Iran conflict have yet to be fully captured in quarterly economic data. For now, the market seems to be finding a temporary floor, but with global supply chains still at risk, any further escalation could quickly reverse the recent gains. Investors are monitoring whether the CME Group will see increased hedging activity if the current conflict proves short-lived.
At 07:30UTC, Bitcoin was trading at around $73,800, up 1.4% on the day. Ether was hovering around the $2,260 mark, having gained close to 4.0% on the day.
