 ▲ US Dollar (USD), Bitcoin (BTC) |
Amid escalating geopolitical tensions in the Middle East, aggressive Bitcoin (BTC) purchases by Strategy (MSTR) are providing strong support for the price floor.
Crypto analyst Lark Davis said in a video uploaded to his YouTube channel on March 12 (local time) that the military clashes in the Strait of Hormuz are having significant ripple effects on global asset markets. Although U.S. President Donald Trump stated that the security situation is stable, Davis explained that consecutive attacks on oil tankers have pushed crude oil prices up to around $97 per barrel. Trump claimed that Iran’s naval and air forces had been neutralized, but market anxiety has yet to subside.
Energy supply instability is increasing volatility in international oil prices and putting pressure on the global economy. Davis noted that Iran is employing an asymmetric strategy by selectively allowing vessels registered in India and Bangladesh to pass. This suggests the formation of a shadow economy similar to how Russia rerouted oil exports through third countries during the Ukraine conflict. Fears are spreading again that inflation could surge as oil prices may rise to $120 per barrel.
In the stock market, hedge funds are building their largest short positions since 2022, betting on a downturn. Davis warned that with the S&P 500 stagnating near its peak, record levels of short selling could instead become a trap that triggers a powerful short squeeze—buying pressure caused by the covering of short positions. If an unexpected rebound occurs amid crowded institutional bearish bets, massive position liquidations could deliver a major shock to the market.
In the digital asset market, purchasing moves by Strategy Chairman Michael Saylor have emerged as a key variable. Strategy bought an additional 32,000 BTC this week alone, demonstrating strong confidence in Bitcoin. Saylor has been accumulating Bitcoin using proceeds from preferred stock sales and has secured capacity to raise tens of billions of dollars more. Bitcoin is currently holding above the $70,000 level, with whale buying activity defending against further declines.
The crypto market is expected to experience heightened volatility as macroeconomic uncertainty intersects with aggressive institutional inflows. While major assets such as Solana (SOL) strive to defend key support levels, Bitcoin’s price trend will depend on easing geopolitical tensions and the strength of capital inflows. Investors should focus on risk management and respond cautiously until a clearer market direction is established.
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