Bitcoin has dropped to $66,400, its weakest level since March 9, as the broader crypto market closes out the month with mounting losses. The asset is currently trading around $66,633, reflecting a decline of 3.9% over the past 24 hours and 5.6% over the past week, according to data from CoinGecko. Analysts point to a combination of geopolitical instability and macroeconomic headwinds as the primary drivers of the downturn. Heightened volatility and rangebound price action are widely anticipated in the near term.
The ongoing conflict in the Middle East has been identified as a central factor behind the selloff. Andri Fauzan Adziima, research lead at cryptocurrency exchange Bitrue, told Decrypt that the war has triggered risk-off conditions across macro assets. The ripple effects have pushed oil prices higher, stoking fears of persistent inflation. Although Bitcoin has outperformed gold and U.S. equities since hostilities escalated on February 28, it has still shed more than 6% from above $75,000 to below $70,000.
The U.S. Federal Reserve‘s decision to hold interest rates steady last week added further pressure on risk assets. Thahbib Rahman, a research analyst at crypto research platform Block Scholes, noted that Bitcoin is responding directly to geopolitical headlines. He pointed out that uncertainty expressed by Trump regarding the likelihood of a ceasefire coincided with Bitcoin falling to the $67,000 level. Ten-year U.S. Treasury yields have also risen for four consecutive weeks amid mixed signals surrounding the U.S.-Iran conflict.
The U.S. dollar index climbed 0.57% this week to reach 100.148, continuing to weigh on risk assets including Bitcoin. Despite the asset trading within a relatively narrow range between $66,200 and $72,000, over $1.33 billion in positions have been liquidated during the week, according to CoinGlass data. Adziima attributed this to heavy leveraged positions concentrated above current price levels, particularly in the $70,000 to $75,000 range, with thinner liquidity on the downside.
Users of Myriad, a prediction market owned by Decrypt’s parent company Dastan, have turned bearish on Bitcoin’s near-term outlook. They currently assign a 56% probability that Bitcoin’s next significant move will take it down to $55,000, a figure that rose 10% in a single day. On the macro side, Myriad users also place a 66% chance that oil could rally to $120, reflecting the broader uncertainty tied to the geopolitical environment. These sentiment indicators underscore the cautious mood among market participants.
Looking ahead, analysts broadly expect continued volatility with the possibility of a relief rally in the medium term, provided that macroeconomic and geopolitical pressures ease. Adziima warned that thin trading volumes over the weekend increase the likelihood of a short-term liquidity sweep toward the $67,000 to $68,000 support zone. Any sustained recovery, experts suggest, will depend heavily on developments in the Middle East and clearer signals from policymakers on interest rates. Until those conditions shift, Bitcoin is expected to remain under pressure.
Originally reported by Decrypt.
