Bitcoin has held relatively steady this month despite heightened volatility in global markets triggered by the Iran conflict and a sharp surge in oil prices.
Energy markets have been particularly turbulent. Key benchmarks — Brent Crude and West Texas Intermediate — have climbed roughly 30% during the month, briefly trading above $100 per barrel early Monday. The spike has weighed heavily on global equities, especially in Asia and Europe, where stock markets have experienced increased downside pressure.
Bitcoin, however, has moved higher during the same period. The cryptocurrency has gained nearly 4% this month, trading around $70,200, according to data from CoinDesk.
Market participants say the asset’s resilience has been supported by strong buying interest from large traders and institutional investors stepping in during price dips.
Paul Howard, senior director at liquidity provider Wincent, said a wave of large over-the-counter (OTC) transactions helped maintain demand for bitcoin as geopolitical tensions escalated.
“Demand has been driven by several large OTC trades, as well as the recent bitcoin purchases by Strategy,” Howard said in comments to CoinDesk. “The timing of these moves amid geopolitical uncertainty could indicate that investor confidence in risk assets is beginning to recover.”
OTC desks enable institutions and large traders to conduct sizeable cryptocurrency transactions privately rather than through public exchange order books. These negotiated trades help minimize the market impact that large orders could otherwise cause.
Howard also noted renewed interest in a trading strategy involving Strategy’s stock. Some investors have been engaging in a “carry trade” that involves shorting Strategy shares while simultaneously buying bitcoin exchange-traded funds, allowing traders to hedge exposure while benefiting from potential bitcoin price gains.
Institutional demand through ETFs has also strengthened. The 11 U.S.-listed spot bitcoin ETFs have recorded more than $700 million in net inflows so far this month, according to figures from SoSoValue.
Vikram Subburaj, CEO of the India-based crypto exchange Giottus, said these inflows mark a notable shift after a prolonged period of withdrawals.
“Since late February, spot bitcoin ETFs have seen net inflows of roughly $1.7 billion, reversing about four months of outflows,” Subburaj said. “Between March 8 and March 10 alone, ETF flows contributed to a weekly net inflow of around $568 million.”
Another factor supporting the market has been continued accumulation by Strategy. Analysts at Nexo highlighted that the Nasdaq-listed firm purchased 17,994 BTC between March 2 and March 8, increasing its total holdings to 738,731 BTC.
According to Nexo analyst Iliya Kalchev, the size of the purchase is significant relative to bitcoin’s supply dynamics.
“More than 20 million BTC have now been mined, leaving fewer than one million coins still to be issued,” Kalchev said. “With around 450 BTC entering circulation daily, supply growth remains limited. Strategy’s latest purchase alone represents roughly five weeks of new issuance and brings its holdings to about 3.7% of the circulating supply.”
On-chain data also suggests continued accumulation among large holders. Subburaj noted that wallets containing more than 1,000 BTC increased their balances by roughly 0.3% during recent market pullbacks, indicating strategic buying during periods of weakness.
He also pointed out that more than 400,000 BTC recently traded between the $60,000 and $70,000 price range, highlighting strong demand within that band.
