Analysis: The CLARITY Act's anticipated warming effect combined with the fiat currency depreciation logic regression is driving BTC to strengthen against the trend

DeepFlowTech · 2026-03-04T12:30:05+00:00

Under the influence of the Middle East conflict, Bitcoin has risen against the trend to a one-month high, driving a rebound in the overall crypto market. The reasons for the increase include increased expectations of fiat currency devaluation, optimistic market sentiment regarding conflict easing, and the upcoming passage of the CLARITY Act, which clarifies the legal status of stablecoins.

DeepFlowTech

2026-03-04 12:30:05

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Deep Tide TechFlow News: On March 4th, according to CoinDesk, amid the impact of Middle East conflicts on global stock markets and commodities, Bitcoin defied the trend and reached a one-month high, driving a recovery in the overall crypto market. After 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 plummeted, while Bitcoin’s relatively strong performance reinforced its phased “safe haven narrative.” Market analysis suggests that this rally is mainly driven by three key factors:

The return of the “fiat devaluation” logic, as Middle East conflicts increase global fiscal pressure, potentially leading to more easing and deficit expansion expectations, reinforcing the “fiat devaluation” narrative, prompting some funds to reallocate into digital assets.
There are expectations of a possible easing of the Middle East situation. Although the U.S. has not responded, this news has strengthened market expectations that the conflict may not spiral out of control long-term, supporting risk asset sentiment recovery.
The CLARITY Act is nearing approval, aiming to clarify the legal status of stablecoins, which is positive for the crypto market.

BTC7.49%

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