Bitcoin defied traditional market behavior during the early weeks of the Iran conflict, attracting investor capital rather than absorbing panic selling, according to data from CoinShares. The digital asset pulled $2.4 billion in inflows over four weeks following the February 28 crisis onset, marking a reversal from months of sustained outflows.
Digital asset investment products recorded $1 billion in inflows during the first week of the Iran conflict, ending a five-week outflow streak that totaled $4.3 billion, according to CoinShares fund flow data. The reversal came as bitcoin rallied into broader market instability, behavior that contrasts with its historical pattern of absorbing weekend selling pressure during geopolitical shocks.
The timing proved opportune for bitcoin. Five months of whale distribution had cleared an estimated $30 billion from the market ahead of the crisis, according to CoinShares research. Bitcoin’s price had fallen well below what most investors paid for their holdings, and momentum indicators showed extreme selling pressure, suggesting the asset was oversold heading into the crisis.
Digital asset products recorded $1 billion in inflows during the week ending February 27, just hours before the conflict began, according to a March 2 fund flow report. U.S. investors contributed $957 million of that total, while Bitcoin accounted for $881 million. The pre-crisis surge, driven by price weakness and renewed whale accumulation, set the stage for the asset’s performance once geopolitical tensions escalated.
Bitcoin Resilience Continues Through Mid-March
Total digital asset inflows slowed to $619 million in the second week as early-week demand of $1.44 billion reversed course with $829 million in outflows Thursday and Friday following rising oil prices that offset weak payroll data, a March 9 report showed. Bitcoin captured $521 million of that week’s flows.
The third week brought $1.06 billion in additional digital asset inflows, pushing total assets under management to $140 billion by March 16, the data showed. That marked a 9.4% increase in AUM since the conflict began.
Bitcoin captured $793 million of weekly inflows, representing the asset’s third consecutive week of gains. U.S. investors drove 96% of that week’s flows at $1.02 billion, while short-bitcoin products attracted $8.1 million, highlighting divided market sentiment, the report showed.
Momentum shifted during the week ending March 23 as Federal Reserve hawkish signals dampened sentiment. Total digital asset inflows slowed to $230 million for the week, with $405 million in outflows recorded after the Federal Open Market Committee meeting, according to the CoinShares report. The first two trading days of that week had generated $635 million in inflows before the reversal.
Bitcoin captured $219 million of the week’s $230 million in total inflows, while Ethereum reversed course with $27.5 million in outflows, ending a three-week streak, the March 23 data showed.
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