Bitcoin’s Billion-Dollar Rally: What’s Fueling the Sudden Surge Amid Global Chaos?

XRP witnessed a second week of capital withdrawal, bucking the trend of broader digital asset gains.

Digital asset investment products attracted $1.06 billion in inflows last week, extending their streak to three consecutive weeks of positive flows. The inflows arrived during intense geopolitical tensions, which appear to have strengthened the perception of digital assets, especially Bitcoin, as a relatively safe haven compared with traditional markets.

Since the Iran crisis began, assets under management in digital asset exchange-traded products have climbed 9.4% and reached a total of $140 billion.

Capital Flow Amid Iran Crisis

According to the latest edition of CoinShares’ Digital Asset Fund Flows Weekly Report, roughly three-quarters of last week’s investment activity was captured by Bitcoin, which drew $793 million. Over a three-week period, cumulative allocations have reached $2.2 billion, which has narrowed the gap with the earlier five-week phase when about $3 billion left the sector. At the same time, short Bitcoin products added $8.1 million, which means that investors still hold mixed views.

Ethereum attracted $315 million last week, pushing its year-to-date performance toward a near-neutral level, which was supported in part by new US staking ETF launches. Other digital assets also received fresh capital. For instance, Solana added $9.1 million, Sui $3.1 million, and Chainlink $2.4 million. Multi-asset investment products drew an additional $2.5 million.

On the other hand, XRP appears to have bucked the trend as it suffered its second week of outflows of $76 million. Litecoin also saw a minor withdrawal of $0.3 million during the same period.

The US dominated regional activity and accounted for 96% of recent digital asset investments. Canada and Switzerland contributed $19.4 million and $10.4 million, respectively. Hong Kong also recorded $23.1 million, its largest weekly inflow since August 2025. Germany posted a $17.1 million outflow, which is its first weekly reduction of the year, while Sweden and the Netherlands experienced smaller outflows of $0.5 million and $0.2 million, respectively.

Rising Risk Appetite

Tensions in the Middle East continued to escalate. Amid these developments, BTC has reclaimed a major resistance level at 71,300. According to experts, this suggests that some risk capital is beginning to flow back into the market. However, liquidity remains concentrated between 72,700 and 74,000. In a statement to CryptoPotato, a Bitunix analyst explained,

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“If prices stabilize above 71,300, the market could enter a new zone of liquidity competition in the short term. On the downside, support liquidity around 69,000 and 70,200 will be closely watched. With geopolitical uncertainty still elevated, the short-term structure of the crypto market continues to be driven primarily by shifts in risk appetite and the distribution of derivatives liquidity.”