Bitcoin fell below $67,000 amid heightened geopolitical tensions and rising U.S. Treasury yields, marking its lowest price since early March. Over $1.33 billion in leveraged positions were liquidated this week, with significant pressure seen between $70,000 and $75,000. Analysts point to risk-off sentiment driven by Middle East conflicts and a stronger U.S. dollar, forecasting continued volatility and a potential relief rally if macro pressures subside.
Bitcoin dropped to lows of $66,400, its lowest level since March 9, as it continued to stack losses for the week. The leading cryptocurrency is currently trading at $66,633, down 3.9% in 24 hours and 5.6% on the week according to CoinGecko data.
The drop is primarily driven by macroeconomic risk-off conditions resulting from geopolitics involving the Middle East war. “Like all other macro assets, Bitcoin is trading to geopolitical headlines,” research analyst Thahbib Rahman stated.
The ripple effects of this war have raised oil prices, leading to fears of sticky inflation. Bitcoin dropped over 6% from over $75,000 to below $70,000 after the U.S. Federal Reserve kept interest rates steady last week.
In addition to geopolitical pressure, 10-year U.S. Treasury yields rose for four consecutive weeks. The U.S. dollar index also rose 0.57% this week, continuing to weigh down on risk assets.
Over $1.33 billion has been liquidated this week, CoinGlass data show. Bitrue research lead Andri Fauzan Adziima noted this reflects heavy leveraged positions stacked especially between $70,000 and $75,000.
Users of the prediction market Myriad turned bearish, putting a 56% chance on Bitcoin’s next move taking it to $55,000. From a macro perspective, they also assign a 66% chance that oil could rally to $120.
Experts continue to expect heightened volatility and choppy price action in the near term. A potential relief rally in the mid-term is contingent on easing macro and geopolitical pressures.
