The Middle East conflict erupted in early March 2026
Phase Timeline Key market developments Dominant sentiment
Initial shock & Liquidation End of February - Early March Sharp decline as investors sold off to seek USD liquidity, taking profits from risky assets. Bitcoin lost its support level. Panic, "risk-off" (prioritizing safety).
Repositioning & Divergence First week of March Clear divergence: altcoins dropped deeper, but Bitcoin and stablecoins showed strong demand. Bitcoin's price recovered and stabilized. Cautious, seeking safe assets within the crypto space.
Recovery & Towards the maximum pain point Mid-March As tensions eased, the market recovered strongly. Bitcoin surpassed the $70,000 mark, heading towards the $76,000 mark. Cautiously optimistic, expecting a Gamma Squeeze.
In-depth analysis: Changes in market behavior
Behind the price fluctuations are more sophisticated movements in investor behavior and market structure.
· Bitcoin's dominance solidified: In the geopolitical storm, capital flowed into Bitcoin. Smaller-cap altcoins, which are considered riskier, experienced deeper declines and much slower recoveries compared to Bitcoin. This solidifies Bitcoin's position as a relatively safe "safe haven" in the digital currency ecosystem, a phenomenon often seen in previous crises.
· The rise of stablecoins as a true haven: Demand for stablecoins (such as USDT, USDC) surged. In the context of instability, investors in regions directly affected by war or concerned about
Phase Timeline Key market developments Dominant sentiment
Initial shock & Liquidation End of February - Early March Sharp decline as investors sold off to seek USD liquidity, taking profits from risky assets. Bitcoin lost its support level. Panic, "risk-off" (prioritizing safety).
Repositioning & Divergence First week of March Clear divergence: altcoins dropped deeper, but Bitcoin and stablecoins showed strong demand. Bitcoin's price recovered and stabilized. Cautious, seeking safe assets within the crypto space.
Recovery & Towards the maximum pain point Mid-March As tensions eased, the market recovered strongly. Bitcoin surpassed the $70,000 mark, heading towards the $76,000 mark. Cautiously optimistic, expecting a Gamma Squeeze.
In-depth analysis: Changes in market behavior
Behind the price fluctuations are more sophisticated movements in investor behavior and market structure.
· Bitcoin's dominance solidified: In the geopolitical storm, capital flowed into Bitcoin. Smaller-cap altcoins, which are considered riskier, experienced deeper declines and much slower recoveries compared to Bitcoin. This solidifies Bitcoin's position as a relatively safe "safe haven" in the digital currency ecosystem, a phenomenon often seen in previous crises.
· The rise of stablecoins as a true haven: Demand for stablecoins (such as USDT, USDC) surged. In the context of instability, investors in regions directly affected by war or concerned about