Bitcoin advanced during Asian trading hours on Monday while other markets remained subdued, as traders continued to navigate uncertainties in the Middle East. The oldest cryptocurrency climbed as much as 3.7%, surpassing $74,400, while other digital assets posted even stronger gains. The second-largest cryptocurrency, Ether, rose up to 6.9%, with Solana and Ripple increasing by 6.1% and 4.7%, respectively.

Since the escalation of tensions involving Iran that began in late February, Bitcoin has outperformed many traditional assets. Gold has declined 4.9% this month, while Bitcoin has gained 12.5%. "Despite geopolitical uncertainty, cryptocurrencies have been in a bullish mood over the past week," said Caroline Mauron, co-founder of Orbit Markets. "A breakout above $75,000 now looks increasingly likely, as both retail and strategic buyers feel the worst of the crypto downturn is behind them."

Inflows into exchange-traded funds (ETFs) appear to signal a return of institutional confidence. The 12 U.S.-listed spot Bitcoin ETFs recorded net inflows of over $763 million last week, marking the third consecutive week of inflows. So far in March, total net inflows have reached $1.3 billion. "BlackRock's IBIT accounted for about 78% of these flows—this concentration reflects conviction buying rather than speculative rotation," noted Rachael Lucas, an analyst at BTC Markets.

Although Bitcoin has historically been viewed as a speculative bet, its performance over the past two weeks during heightened geopolitical tensions has resembled that of a macro hedge. Earlier, U.S. President Donald Trump called on nations to assist in reopening the critical trade route through the Strait of Hormuz. As Bitcoin surged on Monday, crude oil pared earlier gains.

Jeff Mei, Chief Operating Officer of BTSE, also pointed out that Iran's statement that the Strait of Hormuz would only be closed to vessels from "enemy" countries suggested that only U.S. and Israeli ships would be threatened. "If the conflict appears near resolution, Bitcoin could rebound sharply and retest the $100,000 level," Mei said. "If the conflict looks set to drag on, Bitcoin may pull back toward $60,000."