Bitcoin nears $72k as Middle East tensions rise

Bitcoin rallied toward US$72,000 as US-listed spot bitcoin ETF net inflows extended into a second straight session amid Middle East tensions and delayed expectations for near-term rate cuts.

SoSoValue shows US spot bitcoin ETFs had net inflows of about US$458 million on March 2 and US$225 million on March 3, while US spot ether ETFs recorded roughly US$38.7 million of net inflows on March 2 before flipping to about US$10.9 million of net outflows on March 3.

Glassnode said perpetual open interest posted its biggest daily percentage rise since July 2025 as leverage expanded when bitcoin tested about US$69,400.

Bitfinex analysts argued in a March 3 report that ETF share activity can create timing gaps with underlying bitcoin purchases that mute near-term price impact, and QCP Capital cautioned in a March 4 market note that disruption near the Strait of Hormuz could trigger further volatility.

The Block’s price page showed bitcoin near US$71,400 and ether above US$2,050 at press time.

🔗 Source: The Block

🧠 Food for thought

Implications, context, and why it matters.

Leverage is amplifying the impact of US-listed spot bitcoin ETF inflows

Strong buying supported the rally, with US spot bitcoin ETFs taking in about US$683 million in net inflows across two straight days.
Trading on borrowed money also picked up. Glassnode reported the biggest one-day percentage jump in perpetual open interest since July 2025 as leverage (borrowed trading funds) grew when bitcoin tested about US$69,400. Perpetual open interest is the total value of outstanding positions in perpetual futures, a type of crypto derivative contract.
Together, these forces mean ETF demand can steady prices while trader borrowing can widen swings. Bitfinex analysts also warned that ETF share trading can lag the underlying bitcoin purchases, which can dampen near-term price moves.

Bitcoin’s price action ties to macro and geopolitical pressures

The rally tracked shifting expectations for rate cuts plus Middle East tensions, linking bitcoin to broader macroeconomic and geopolitical developments beyond crypto-only drivers.
QCP Capital warned that disruption near the Strait of Hormuz could raise volatility, since geopolitical shocks can ripple into energy markets.
For businesses outside crypto, bitcoin offers one example of how speculative assets can move with macro shifts and changing investor risk tolerance.