Bitcoin has achieved a remarkable milestone, climbing above the critical $73,000 threshold, marking its highest value in a month. This surge comes in stark contrast to the prevailing risk-averse sentiment affecting U.S. equities, largely driven by escalating tensions in the Middle East. According to data from CoinGecko, Bitcoin recorded a daily increase of 7%, pushing the BTC/USD pair to heights not seen in weeks.
The recent rally is significantly attributed to a continuous influx of capital into spot Bitcoin ETFs, which has persisted for two consecutive sessions. This trend unfolds even amid heightened geopolitical tensions, with Israel reportedly targeting multiple security sites in Tehran, and Iranian forces engaging U.S. facilities. On March 3, U.S.-listed spot Bitcoin ETFs collectively saw net inflows totaling $225.15 million, following a staggering $458 million on the previous day, with no funds reporting outflows on March 2, as per data from SoSoValue.
The bulk of these inflows have come from BlackRock”s iShares Bitcoin Trust (IBIT), which alone attracted $322 million just on Tuesday. This resurgence in institutional interest comes after a challenging start for spot Bitcoin ETFs earlier this year. From mid-October to late February, these funds experienced cumulative outflows nearing $9 billion. Despite an overall net outflow of approximately $1.1 billion for 2026, recent months have seen a shift in momentum, with investors contributing around $1.7 billion since February 24, indicating a renewed risk appetite among institutional players.
Although the inflow trend is encouraging, the broader market sentiment remains notably bearish. The Crypto Fear & Greed Index continues to hover around 10, a figure typically indicative of “extreme fear” among investors. Nevertheless, should geopolitical tensions ease, there is potential for further strengthening of ETF inflows, whereas additional instability may introduce heightened volatility into the market.
At present, Bitcoin is trading at approximately $73,760, according to CoinGecko. The leading cryptocurrency has experienced a week-on-week increase of over 6.9%, although it still lingers about 41.8% below its all-time high of $126,080, recorded on October 6, 2025.
