Bitcoin experienced heightened volatility amid geopolitical tensions surrounding the Strait of Hormuz, reinforcing its role as a macro risk asset rather than a safe haven. The cryptocurrency swung between $68,265 and $71,051 before settling near $69,195. Liquidations surged to over $300 million, while the broader market followed, with total market cap slipping to $2.37 trillion and the Fear and Greed Index falling sharply.
Geopolitical tensions triggered a sharp repricing event across cryptocurrency markets. Bitcoin’s price volatility resulted in over $300 million in total market liquidations, with more than $123 million coming from BTC positions alone.
This surge, an 80% increase, indicated forced unwinds dominated near-term price action. The market’s overall risk sentiment deteriorated as the Fear and Greed Index dropped to 9. Concurrently, short positions on exchanges rose to 51.7%, signaling a shift toward protective strategies.
Bitcoin’s decline spread to major altcoins, confirming broad market sensitivity. Ethereum fell 3.01% to $2,091, while Ripple and Solana saw similar declines of over 2.8%.
The CoinMarketCap Top 20 Index fell 2.5%, highlighting widespread weakness. This coordinated pressure underscored how altcoin liquidity often tightens in tandem with Bitcoin during macro stress events.
Bitcoin’s market dominance increased to 58.2%, suggesting a defensive rotation within crypto assets. Spot Bitcoin ETF flows reversed from a $199 million net inflow one day to a $163 million net outflow the next.
This reflected short-term institutional uncertainty despite cumulative inflows still exceeding $56 billion. Nic Puckrin, co-founder of Coin Bureau, stated, “Prolonged oil prices above $100 could drive stagflation, weakening growth and raising inflation.”
The analyst’s comment implies financial markets may be underestimating the potential macro risks. Such a scenario would leave both Bitcoin and altcoins exposed to further pressure if conditions deteriorate.
