Amid the Middle East conflict impacting global stock markets and commodities, Bitcoin bucked the trend, reaching a one-month high and driving a recovery in the overall crypto market. After falling nearly 50% from its all-time high last October, Bitcoin was once in oversold territory. Following the outbreak of this major conflict, traditional assets suffered significant declines, while BTC's relatively resilient performance reinforced its temporary "safe-haven narrative." Market analysts believe this surge is primarily driven by three factors: 1. The return of the "fiat currency devaluation" logic: The Middle East conflict exacerbates global fiscal pressure, potentially driving further easing and deficit expansion expectations, reinforcing the "fiat currency devaluation" narrative, leading some funds to reallocate to digital assets. 2. Expectations of a possible easing of tensions in the Middle East: Although the US has not responded, this news strengthens market expectations that the conflict may not spiral out of control in the long term, supporting a recovery in risk asset sentiment. 3. The Clarity Act is nearing passage, aiming to clarify the legal status of stablecoins, which is beneficial to the crypto market. (CoinDesk)