$40 Trillion Reasons: Why Bitcoin Held $78,000 Through a Hawkish Fed

Bitcoin is holding near $78,000, little changed over 24 hours despite a clear deterioration in the global risk environment. The asset has advanced roughly 23% in August, against gold's 9% gain and the Nasdaq's 4%. That level follows a rapid move from about $62,000 to above $77,000 in days, wiping out close to $3 billion in leveraged shorts. The stability since matters more than the rally itself: bitcoin has consolidated in a narrow band while traditional risk assets turned lower.

Source: Coindesk, TradingView, Teroxx Research.

The immediate source of stress is geopolitical. U.S. forces struck two rocket launchers on Iran's Larak Island in the Strait of Hormuz, drawing retaliation from Tehran and reigniting a conflict that has disrupted tanker traffic for six months. WTI climbed 2.1% to $85.14 per barrel, with Brent up by a comparable margin, while Dow futures fell 0.29%, the S&P 500 0.36% and the Nasdaq 100 0.4%. Asian markets followed, led by the CSI 300, which was 0.81% lower.