Bitcoin Breaks Above $70,000 Amid Worsening Middle East Tensions and Optimism Over the CLARITY Act — Explaining the Tactics of Market Manipulators (Mar 6, 2026 | Column)

Bitcoin (BTC) this week moved in a market environment heavily influenced by two major factors: U.S. cryptocurrency policy developments and rising geopolitical tensions in the Middle East.

Between February 27 and 28, Bitcoin recorded a sharp decline of up to $3,000 (roughly several thousand dollars). One of the key reasons was growing uncertainty over progress in negotiations surrounding the U.S. crypto market structure bill known as the CLARITY Act, for which the White House had set March 1 as a deadline for discussions.

The bill is regarded as a crucial piece of legislation that would establish the institutional framework for the cryptocurrency market. However, negotiations have stalled due to conflicting interests between the crypto industry and the banking sector, leading to growing speculation that a compromise before the deadline would be difficult.

At the same time, geopolitical risks intensified following the deterioration of the situation involving Iran. Reports that the United States authorized the partial evacuation of embassy personnel in Israel heightened market anxiety, prompting investors to move funds out of risk assets, including cryptocurrencies.

Meanwhile, from March 1 to March 2, the market experienced significant volatility after reports emerged of military strikes against Iran by the United States and Israel.

As concerns grew over an escalation of the conflict and the possibility of a closure of the Strait of Hormuz, Bitcoin’s characteristics as a stateless asset independent of governments and financial institutions began to attract attention, leading to periods of capital inflows into the cryptocurrency.

However, when President Donald Trump suggested that military operations could last longer than four to five weeks, concerns about the broader economic impact of a prolonged conflict resurfaced, prompting investors to adopt a more cautious stance.

A $6,000 Rally as Escalating Middle East Tensions Intersect with Expectations for the CLARITY Act

At the start of the new week on March 3, Bitcoin briefly broke above the key $70,000 level shortly after the U.S. market opened. From March 4 to 5, the rally accelerated further, with gains at one point exceeding $6,000.

Behind the surge were comments from senior U.S. officials, including President Trump, urging the banking sector to make concessions in negotiations surrounding the CLARITY Act.

Another factor supporting market sentiment was the news that Kraken Financial, a U.S.-based crypto exchange group, became the first crypto-related firm to obtain a Federal Reserve master account, a development widely viewed as a milestone for the industry.

With both rising geopolitical tensions and expectations for regulatory progress in the United States shaping investor sentiment, Bitcoin’s price movement reflected its dual narrative as both a safe-haven asset and a stateless financial asset.