ChainCatcher reports that, according to market sources, as the Middle East conflict impacts global stock markets and commodities, Bitcoin has defied the trend to reach a one-month high, driving a recovery in the overall crypto market. Since falling nearly 50% from its all-time high in October last year, Bitcoin has been in an oversold zone.
Following the outbreak of this round of major conflicts, traditional assets have plummeted, while Bitcoin’s relatively strong performance has reinforced its narrative as a safe haven. Market analysts believe that this rally is mainly driven by three factors: 1. The return of the “fiat devaluation” logic, as the Middle East conflict intensifies global fiscal pressure, potentially leading to more easing and deficit expansion expectations, reinforcing the “fiat devaluation” narrative, prompting some funds to reallocate into digital assets. 2. There are expectations of a possible easing of the Middle East situation; although the U.S. has not responded, this news has strengthened market expectations that the conflict may not spiral out of control long-term, supporting risk asset sentiment recovery. 3. The CLARITY Act is nearing approval, aiming to clarify the legal status of stablecoins, which is positive for the crypto market.
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