- Bitcoin fell below $67,000, hitting its lowest level since March 9, as Middle East tensions and rising Treasury yields pressured risk assets.
- Over $1.33 billion in leveraged positions was liquidated this week, according to CoinGlass data, with heavy concentration between $70,000 and $75,000.
- Experts anticipate continued volatility and choppy price action in the near term, with a potential relief rally dependent on easing macro pressures.
- Prediction markets reflect the bearish sentiment, with users of Myriad giving a 56% chance that Bitcoin’s next major move will be down to $55,000.
Bitcoin and the broader cryptocurrency market extended their losses this week, with the leading digital asset dropping to a three-week low of $66,400 on Friday. This decline, which saw Bitcoin fall over 5.6% for the week, is largely attributed to a macroeconomic risk-off environment driven by geopolitical instability and rising yields. Analysts point to the conflict in the Middle East, which began on February 28, as a primary catalyst for the market’s retreat.
The Ripple effects of the war have driven up oil prices, fueling fears of persistent inflation. Consequently, Bitcoin retreated over 6% from its recent highs above $75,000 after the U.S. Federal Reserve held interest rates steady last week. “Like all other macro assets, Bitcoin is trading to geopolitical headlines,” Thahbib Rahman, a research analyst at Block Scholes, noted, referencing former President Trump’s uncertain tone regarding a potential ceasefire.
Meanwhile, the 10-year U.S. Treasury yield rose for a fourth consecutive week, and the U.S. dollar index gained 0.57%. These factors continued to weigh heavily on risk-sensitive assets like Bitcoin. Despite trading in a relatively tight range between $72,000 and $66,200, the market experienced over $1.33 billion in liquidations, reflecting heavily leveraged positions stacked at higher price levels.
Experts now expect heightened volatility and choppy price action to persist in the near term. Andri Fauzan Adziima, research lead at Bitrue, warned that thin weekend liquidity raises the odds of a quick move toward the $67,000 to $68,000 support zone first. The uncertain macro outlook is further highlighted by Myriad users assigning a 66% chance that crude oil’s next move will be a rally to $120 per barrel.
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