JPMorgan analysts report that Bitcoin is outperforming gold and silver amid the Iranian crisis, with significant inflows into crypto instruments.
In light of the ongoing Iranian conflict, analysts at JPMorgan have noted that Bitcoin is outperforming traditional precious metals, particularly gold and silver. As of early March, gold has seen a 15% decline, largely due to rising interest rates and a strengthening dollar, which have cooled an overheated market. The recent high prices of gold and silver have made these assets susceptible to profit-taking, leading to significant sell-offs.
During the past three weeks, gold exchange-traded funds (ETFs) experienced a staggering $11 billion loss, while silver ETFs have lost all gains made since last summer. Conversely, Bitcoin-based instruments have attracted $1.3 billion in inflows during the same timeframe, reflecting a growing preference for cryptocurrency amidst geopolitical tensions.
Increased Crypto Activity in Iran
The military conflict has triggered a notable surge in crypto trading in Iran, with many residents moving funds from local exchanges to non-custodial wallets and international platforms. Global open interest in Bitcoin has risen to $30 billion, with Binance leading the influx, receiving $829 million in Bitcoin and $1.6 billion in Ethereum.
Institutional interest appears to be shifting as well. While positions in gold and silver futures began to decline in January, Bitcoin futures have maintained stability. This trend suggests that while precious metals are losing traction, Bitcoin is gaining ground in terms of institutional backing.
Despite these positive trends for Bitcoin, network activity has seen a significant downturn. The number of active Bitcoin addresses plummeted by 30%, reaching its lowest level since August 2025. Analysts warn that without a resurgence in on-chain activity, any price increases may not signify a robust recovery.
“A price increase alone does not confirm a structural recovery. Weak on-chain activity means any rise is built on a fragile foundation,” noted CryptoQuant analyst Carmelo Aleman.
As of now, Bitcoin is trading at approximately $67,700, having decreased by 2.7% in the last 24 hours. A significant quarterly options expiration on March 27 saw $13 billion in Bitcoin options and $2.1 billion in Ethereum options, with a bullish bias indicated by a put-to-call ratio of 0.56.
Looking ahead, analyst Sykodelic has predicted that Bitcoin could reach $200,000 if it can close a weekly candle above $74,400, setting the stage for a new all-time high.
