Analysis: The CLARITY legislation expectations resonate with the fiat devaluation narrative, and BTC is strengthening against the trend amid Middle East conflicts.

SmartContractAuditor · 2026-03-04T18:57:05+00:00

Against the backdrop of the Middle East conflict affecting global markets, Bitcoin has risen against the trend to a one-month high, becoming a "safe-haven asset." This increase is mainly driven by expectations of fiat currency devaluation, market optimism about easing tensions, and the upcoming passage of the CLARITY Act, which has prompted capital inflows into digital assets.

SmartContractAuditor

2026-03-04 18:57:05

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Odaily Planet Daily reports that amid the Middle East conflict impacting global stock markets and commodities, Bitcoin has defied the trend, reaching a one-month high and driving a rebound in the overall crypto market. Since dropping nearly 50% from its all-time high in October last year, Bitcoin was once in an oversold zone. Following the outbreak of this major conflict, traditional assets have plummeted, while Bitcoin’s relatively strong performance has reinforced its “safe haven” narrative. Market analysis suggests that this rally is mainly driven by three key factors:

The return of the “fiat devaluation” logic, as the Middle East conflict intensifies global fiscal pressure, potentially leading to more easing and deficit expansion expectations, reinforcing the “fiat devaluation” narrative, prompting some funds to reallocate into digital assets.
Expectations of a possible easing of the Middle East situation. Although the U.S. has not responded, this news has strengthened market expectations that the conflict may not spiral out of control long-term, supporting risk asset sentiment recovery.
The CLARITY Act is nearing approval, aiming to clarify the legal status of stablecoins, which is positive for the crypto market. (CoinDesk)

BTC6.38%

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