Middle East Tensions Drive Flight to Gold as Investors Exit Equities, BTC

Escalating tensions in the Middle East, highlighted by Iran increasing crude oil exports amid hawkish US rhetoric on its nuclear program, are driving investors toward safe-haven assets, primarily gold. Analysts suggest a direct US-Iran conflict could boost gold prices by about 15% to $5,500-$5,800 per ounce. This flight to safety is evident in India, where gold ETF inflows hit an all-time high of $2.7 billion, surpassing equity mutual fund inflows for the first time. Conversely, Bitcoin (BTC) is sensitive to these macro forces; strong safe-haven flows into the US dollar could push BTC toward $64,000-$65,000, though inflation concerns might push it toward $69,000. On-chain data shows limited crypto conviction, with weak whale accumulation and persistent ETF outflows, although US spot Bitcoin ETFs saw a significant $506.5 million inflow recently, marking a potential rebound after five weeks of outflows.

(Source：Cointelegraph)