Bitcoin breaks through the $71,000 mark, and the entire cryptocurrency market retaliates.

The cryptocurrency market saw a strong rebound on Wednesday, completely recovering from the losses triggered by the escalation of the Middle East conflict, with movements independent of other pressured asset classes. During the early London session, Bitcoin surged 5.6% at one point, briefly surpassing $71,812, reaching a new high in nearly a month. Ethereum also skyrocketed by 6% to $2,086, with the entire crypto market showing gains. As of writing, Bitcoin has risen by 5.35% to $71,313. Since the US-Israeli coalition's strike against Iran last Saturday, the world's largest cryptocurrency has experienced severe volatility, dropping to a low of $63,038 that day. However, investors have poured into digital assets since then, with data showing that the net inflow into US spot Bitcoin ETFs exceeded $680 million over the course of Monday and Tuesday. FxPro's chief market analyst said: "Considering the brutal sell-off in financial markets and gold the day before, this can be considered a victory for crypto assets. Perhaps some traders are now viewing cryptocurrencies as a safe haven." On Wednesday, Asian benchmark stock indices plunged, registering the largest single-day drop in nearly a year, while the Korean stock market experienced historic sell-offs. US stock index futures fell across the board, while the European Stoxx 600 index showed a slight recovery. Gold fell below $5,000 per ounce on Tuesday, before making a modest recovery to above $5,160 on Wednesday morning. The chief investment strategist of Wealth Club pointed out: "With investors assessing the latest developments in the Middle East and remaining cautious of a new round of turmoil, market sentiment remains highly cautious." Despite the strong rebound on Wednesday, Bitcoin is still about 40% lower than its peak in October of last year, following an extended period of selling. Analysts cautioned: "Given the intensified stock market volatility leading institutional investors to deleverage, the current market environment is still fragile and it is difficult to determine the bottom."