Middle East Tensions Escalate as Bitcoin Volatility Surges

Escalation of the conflict in the Middle East, involving tensions between the United States–Israel and Iran since Saturday, 28 February 2026, is now impacting global economic stability. The closure of the Hormuz Strait, a strategic chokepoint through which around 20 percent of world oil trade passes, is the main trigger for concerns over energy supply. Iran’s retaliatory strikes against US facilities in Gulf states such as Bahrain, Qatar, Kuwait, Iraq and the United Arab Emirates have further clouded the situation. This has driven energy prices higher, with crude oil reportedly trading at around US$80 per barrel, heightening inflation risks in various countries. Amid the macroeconomic pressure, gold prices have strengthened to around US$5,100 per troy ounce, reflecting increased demand for safe-haven assets. Meanwhile, US technology stock indices have recovered only modestly amid a strong risk-off sentiment. The 24/7 crypto market reflects investor sentiment in real time. Data from CoinMarketCap shows Bitcoin (BTC) briefly dipping to US$63,100 over the weekend, before rallying to US$70,000 at the start of the week. It is currently trading around US$68,000, with the global crypto market cap around US$2.33 trillion. Antony Kusuma, Vice President of Indodax, says that the high volatility mirrors the market’s sensitivity to macro and geopolitical news. “The surge and corrections within days show the market is highly headline-driven. In such a situation, global sentiment and policy dynamics are the main factors influencing movements in risk assets, including equities and crypto,” he said in an official statement on Thursday (5 March 2026). He emphasised the importance of disciplined risk management for investors. In the early stages of turmoil, investors tend to adopt a defensive stance to safeguard liquidity. He urged investors to avoid decision-making based on FOMO (Fear of Missing Out). Indodax reaffirms its commitment to maintaining liquidity, system security, and transparency for all members. The long-term investment perspective is key to staying rational and adaptable in the face of geopolitical volatility.