Bitcoin fell 1.8% over 24 hours to $68,160 on Monday, briefly dipping below $67,600 during late Sunday trading, as escalating tensions between the United States and Iran rattled financial markets worldwide. The decline contributed to $336.3 million in total crypto liquidations over the same period, with roughly $100 million of that stemming from failed Bitcoin long positions, according to data from CoinGlass. The broader crypto market moved in tandem with equities rather than acting as a protective store of value.
The latest flare-up began when US President Donald Trump posted on Truth Social on Sunday, warning that the US would strike and destroy Iranian power plants if Iran did not open the Strait of Hormuz within 48 hours. Iran responded by threatening to attack US and Israeli assets in the Gulf and to fully close the strait, a critical global oil shipping route. The exchange marked the fourth consecutive week of escalating rhetoric between the two nations.
Oil markets reacted sharply to the developments. Crude oil briefly surged past $100 per barrel in early Monday trading before retreating to $97.20, later climbing back to $99.30. Brent crude, a global oil pricing benchmark, jumped above $114 per barrel before settling just below $113. The volatility in energy prices added to broader concerns about inflation and monetary policy.
Stock markets across Asia also declined in response to the heightened tensions. Australian and New Zealand markets each fell 0.8%, while Japan‘s market dropped more than 4%. Sentiment across asset classes deteriorated sharply, with the Fear and Greed Index falling deep into “extreme fear” territory at a reading of 8.
Rachael Lucas, an analyst at crypto exchange BTC Markets, said crypto “is trading in lockstep with equities right now, not as a haven, and sentiment is sitting at historic lows.” She noted that Brent’s price surge “is feeding inflation expectations,” with the probability of a US Federal Reserve rate hike rising from zero to 12.4% in a single week. Lucas described this as “a significant macro repricing that crypto will continue to reflect until there is clarity on both fronts.”
Lucas identified key price levels for Bitcoin to watch in the near term. She said $68,000 represents the immediate support level, with $65,800 serving as the next meaningful floor if that level breaks. On the upside, she said Bitcoin would need to reclaim $71,500 before any credible recovery narrative could take hold. She also cautioned that the Iran conflict has no clear negotiating counterpart or defined exit timeline, making near-term de-escalation difficult to predict.
Despite the bearish sentiment, Lucas pointed to signs of underlying institutional strength. Bitcoin exchange-traded funds have recorded $1.43 billion in net inflows so far this month, suggesting sustained demand from larger investors. She noted that when sentiment is this depressed alongside strong institutional infrastructure, historical patterns suggest conditions for a recovery may be forming, even if the timing remains uncertain.
Originally reported by CoinTelegraph.
