Analysis: Middle East conflict drives institutional return to the crypto market; Bitcoin outperforms gold and US stocks.

Amidst the escalating tensions in the Middle East impacting global markets, Bitcoin has recently outperformed traditional assets. Data shows that since the outbreak of the conflict related to Iran, Bitcoin has risen approximately 3.5% to around $68,000, while Gold has fallen by about 5%, Silver by about 12%, and the Nasdaq 100 and S&P 500 by about 1% and 1.5%, respectively. Market analysts believe that Bitcoin's recent rebound is related to the clearing of leverage in the derivatives market. Data shows that the size of open interest in Bitcoin-denominated futures contracts has decreased, and the funding rate for perpetual contracts remains negative at around -3.5%, indicating that short positions remain crowded. At the same time, the "Coinbase premium" has reappeared, coupled with continued net inflows into spot ETFs, suggesting that US institutional investors may be viewing the current price range as a new entry opportunity. On the macro front, driven by geopolitical conflicts, WTI crude oil prices rose to approximately $116 per barrel at one point, before falling back to around $100 due to expectations of G7 strategic reserve releases; the US dollar index rose to approximately 99, while the 10-year US Treasury yield rose from around 4% to approximately 4.2%. (CoinDesk)