Bitcoin showed resilience amid geopolitical tensions on Monday, holding its price near $79,076 as U.S. President Donald Trump threatened military action against Iran. The world's largest cryptocurrency moved little in response to the developments, reflecting a shift in how the asset has reacted to international conflict.
The stability marks a departure from earlier this year, when geopolitical events triggered sharper volatility. Bitcoin declined when the U.S. and Israel attacked Iran in February and remained volatile through March and April amid reports of conflict. Recent months have seen more muted price swings, according to analysts.
Bitcoin has climbed nearly 30% over the past month, driven by several factors beyond geopolitical considerations. The U.S. Treasury's announcement to expand liquidity-support buyback operations weighed on the dollar, benefiting non-yielding assets like bitcoin and gold.
Regulatory developments have also supported the rally. President Trump endorsed the Clarity Act last week, calling it very, very powerful legislation. The proposed framework would distinguish between digital assets classified as securities, commodities, or payment stablecoins—requirements the crypto industry has long sought.
Investment flows have reinforced the upward momentum. Spot bitcoin exchange-traded funds attracted $2.8 billion between August 17 and 27, marking their largest inflow since October. BlackRock's IBIT led with $928 million the following week.
Bitcoin reached $81,281 last week before declining on Friday. Over a seven-day period, the price remained unchanged from its starting point.
