【Analysis: CLARITY Legislation Expectations Resonating with Fiat Currency Depreciation Narrative, BTC Strengthens Against the Odds Amid Middle East Conflict】

Odaily Planet Daily reported that as the Middle East conflict impacts global stock markets and commodities, Bitcoin has surged against the trend to a one-month high, driving a rebound in the overall crypto market. Since falling nearly 50% from its all-time high in October last year, Bitcoin was once in an oversold zone. Following the outbreak of this major conflict, traditional assets have plummeted, while BTC's relatively resilient performance has reinforced its phased "safe haven narrative." Market analysis suggests that this round of rally is mainly driven by three factors: 1. The "fiat depreciation" logic re-emerges, as the Middle East conflict intensifies global fiscal pressure, potentially fueling more easing and deficit expansion expectations, strengthening the "fiat depreciation" narrative, leading some funds to reallocate into digital assets. 2. There are expectations of a possible easing of the Middle East situation; although the U.S. has not responded, this news has reinforced market expectations that the "conflict may not spiral out of control long-term," supporting risk asset sentiment recovery. 3. The CLARITY bill is close to passing, aiming to clarify the legal status of stablecoins, which is positive for the crypto market. (CoinDesk)