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Global market turmoil triggered by the Iran conflict has pushed investors toward safe-haven assets. Surprisingly, one asset has outperformed both gold and the US dollar
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Global markets have been volatile since the beginning of the ongoing Iran war, with the conflict significantly disrupting oil supply and triggering uncertainty across financial markets. As tensions escalate, investors are moving away from equities typically considered riskier during periods of instability and looking for safer places to park their money.
Traditionally, gold and the US dollar have served as the primary safe-haven assets during geopolitical crises. While both continue to attract investors, another asset has recently outperformed them in terms of price movement.
Since the latest conflict in Iran began on February 28, Bitcoin (BTC) has surged past the $72,000 mark, according to an Investopedia report. The rise is notable because it comes at a time when both oil prices and stock markets are experiencing sharp swings.
Although the cryptocurrency’s roughly 10% gain may not appear dramatic at first glance, it stands out in a climate where investors are struggling to navigate uncertainty. Interestingly, Bitcoin has historically been viewed as a risk asset, and it has rarely behaved like a traditional safe haven during global crises.
Sharing his perspective, Anuj Chaudhary, Founder of INRGrid Stable, said, “As geopolitical tensions escalate during the Iran war, Bitcoin has risen nearly 10%. It has outperformed both gold and the US dollar, signaling a shift in what investors value in times of crisis. Unlike traditional safe havens, Bitcoin is not just an asset you hold. It’s one you can move instantly across borders without banks, governments, or physical infrastructure. When capital controls tighten and uncertainty rises, that mobility becomes its greatest strength.”
Is Bitcoin Really a Safe Asset?
With the Iran conflict showing no signs of easing, some investors may increasingly look toward cryptocurrencies as an alternative investment. However, experts remain divided on whether Bitcoin can truly rival gold as a reliable hedge during crises.
Recent investment flows suggest that interest in Bitcoin is rising amid geopolitical tensions. Funds linked to the cryptocurrency including the iShares Bitcoin Trust and the Fidelity Wise Origin Bitcoin Fund have recorded more than $1.1 billion in inflows since the initial strikes on Iran, according to the Investopedia report citing data from Farside Investors.
Chaudhary further explained, “Bitcoin’s self-custodial nature is redefining the concept of financial safety. Gold can be seized, currencies can be frozen, and banking systems can be disrupted. But when held in self-custody, Bitcoin remains accessible to its owner regardless of location or political climate. This combination of sovereignty, borderless transferability, and resilience is driving its emergence not just as a speculative asset but as a potential new-age safe haven in an increasingly fragmented world.”
It is also worth noting that cryptocurrency trading volumes typically increase during major geopolitical crises. Similar spikes were observed during events such as the Russia–Ukraine war, the Israel–Palestine conflict, and the COVID-19 pandemic. As a result, many investors now see Bitcoin occupying a flexible position within global financial markets, with its role shifting depending on investor sentiment, the nature of the crisis, and regional economic conditions.
Nevertheless, many experienced traders remain cautious about categorising Bitcoin as a dependable safe-haven asset. One key reason is that central banks are unlikely to hold Bitcoin as a reserve asset, whereas they have steadily increased their gold reserves in recent years.
Why Has Gold Not Rallied?
Historically, gold tends to outperform most assets during periods of conflict and economic instability. However, during the current Iran crisis, gold prices have not seen the kind of rally many investors expected.
Gold briefly traded at $5,327.42 per ounce about a week after the conflict began but has since stabilised within the $5,000–$5,200 range.
One major reason is the strengthening US dollar. When the dollar strengthens, gold becomes more expensive for buyers using other currencies, which tends to reduce global demand.
Additionally, rising oil prices are fueling inflation concerns. Higher inflation in the United States reduces the likelihood that the Federal Reserve will cut interest rates in the near future. If investors expect interest rates to remain elevated, gold becomes slightly less attractive compared to other investment options.
March 17, 2026, 11:21 IST
