Bitcoin jumps to $65,000 as Iran tensions fuel rotation from AI stocks

Bitcoin rose 3.2% to briefly touch $65,000 as escalating US-Iran hostilities drove capital out of AI stocks and into crypto, CoinGecko data shows as of 00:36 UTC on July 15.

"The market is pricing in a geopolitical risk premium that's pushing traders toward non-sovereign assets," said Nina Volkov, a crypto macro analyst. "Korean retail volume surging while AI stocks sell off signals a textbook rotation trade."

Korean crypto trading volume skyrocketed during the Asian session, even as AI memory stocks slumped, according to local exchange data. The divergence comes after Iran launched missiles at US military facilities in Jordan and Bahrain over the weekend, following large-scale US strikes on Iranian territory, per CNN reports. The Strait of Hormuz, through which about 20% of global oil passes, remains a flashpoint after the US and Iran's Islamic Revolutionary Guard Corps exchanged fire in March, with Iran warning it would persist with attacks until perceived US interference in the region ceases.

The rotation into crypto mirrors declining confidence in a near-term diplomatic resolution. Prediction markets tracked by Vera price the odds of a US-Iran diplomatic meeting by July 31 at 33.5%, down from 44% earlier this week. Bitcoin's move above $65,000 tests resistance at $65,500, with support at $62,000, according to technical levels tracked on Coinglass. Open interest across BTC futures rose alongside the price, with funding rates turning positive, indicating leveraged longs are re-entering the market as traders bet on further upside amid the macro uncertainty.

This article is for informational purposes only and does not constitute investment advice.