Bybit: "Safe-haven funds shifting into crypto…market volatility persists"

In the wake of the recent situation involving Iran, some funds that had been parked in safe-haven assets appear to have flowed into cryptocurrencies such as Bitcoin (BTC).

Crypto exchange Bybit said via its official X account that "after gold hit $5,400 on the 2nd, it corrected to $5,180," adding that "a clear reallocation has emerged, with crypto absorbing part of the defensive flows that had previously moved into gold." Bybit added that the narrative of Bitcoin as an asset for "flight-to-safety" flows is gradually strengthening.

The firm also said market conditions remain unstable. Bybit noted that "signals of unofficial diplomatic channels between the U.S. and Iran sparked a 'risk-on' move, but the market remains unstable," adding that "with geopolitical uncertainty persisting, oil prices are rising again and investors are staying on high alert."

It added that "Brent crude is trading near its highest level since July 2024," and that "despite comments by U.S. President Donald Trump, concerns about supply disruptions in the Strait of Hormuz are still being priced in by the market."