Why does Bitcoin remain steady at $70,000 despite soaring oil prices and the clouds of war? Institutional and whale funds are the key support

On March 10, news reports indicate that as the conflict in Iran escalates and international oil prices rise rapidly, global stock markets are generally under pressure. However, Bitcoin has shown strong resilience. This month, Brent crude and West Texas Intermediate crude prices have increased by about 30%, breaking the $100 per barrel mark, while Bitcoin has risen approximately 4%, reaching near $70,000 at one point, attracting market attention.

Senior executive Paul Howard of liquidity provider Wincent said that Bitcoin’s stability amid rising macro risks is mainly due to large traders continuously buying through over-the-counter (OTC) block trades. He noted that recent market activity includes several large private negotiated transactions, with funds betting that geopolitical conflicts may not last long, and institutional money is gradually returning to the crypto market.

OTC trading is typically used by large institutions or high-net-worth investors to execute large buy or sell orders to avoid impacting the public market price. This method is especially common during market turbulence, as buyers and sellers can negotiate prices and quantities directly, enabling high-volume asset transfers.

Meanwhile, some traders are refocusing on so-called “arbitrage strategies.” In this approach, investors short Strategy stocks while buying Bitcoin ETFs to capture the price difference between the two. If Bitcoin’s price rises faster than the related stocks decline, traders can hedge their risks and profit simultaneously.

The return of institutional funds also supports the market. Data shows that Bitcoin-related ETF products have seen net inflows of over $700 million this month. Vikram Subburaj, head of an Indian crypto platform, pointed out that since the end of February, these products have accumulated about $1.7 billion in inflows, ending months of continuous outflows.

Additionally, large corporations continue to buy Bitcoin, further boosting market sentiment. According to Nexo analyst Iliya Kalchev, Strategy added 17,994 Bitcoin in early March, bringing its total holdings to 738,731 BTC, accounting for about 3.7% of circulating supply. This purchase size is close to the amount of new Bitcoin issued over approximately five weeks on the network.

On-chain data also shows that large wallets holding over 1,000 Bitcoin have slightly increased their holdings by about 0.3% during recent price corrections. Meanwhile, over 400,000 Bitcoin have changed hands within the $60,000 to $70,000 range. Market observers believe that in an environment of rising geopolitical uncertainty, continued accumulation by institutional funds, corporate reserves, and whale accounts is becoming an important stabilizing force for Bitcoin’s price. (CoinDesk)