Bitcoin prices slipped to around $67,408 on Monday, March 23, but soon recovered some ground to hover just above $68,220, marking a 1.59% decline from the previous close.
The cryptocurrency market came under renewed pressure as geopolitical tensions escalated, with the US, Israel, and Iran exchanging fresh threats and attacks.
The world’s largest cryptocurrency dropped as much as 3.3% on Sunday to trade near $68,150, its lowest level since early March. The sell-off was more pronounced across other tokens, with Ethereum falling nearly 5% at one point to around $2,050, while Solana, XRP, and Cardano also registered declines.
Bitcoin has been under pressure since the onset of the conflict, shedding roughly 20%, amid the rising risk-off sentiment among investors. The downturn has highlighted the limitations of the long-standing view within crypto circles that Bitcoin can reliably function as a safe-haven asset during periods of crisis.
In the latest development, US President Donald Trump warned that he would target Iran’s power infrastructure unless the country reopened the Strait of Hormuz, a crucial transit corridor that has effectively remained shut for weeks, pushing up oil and commodity prices. Iran responded with threats of its own, stating it would strike US and Israeli bases in the Middle East if its energy facilities were attacked. At the same time, Iranian strikes on Israel appeared to be intensifying.
Against this backdrop, all assets from gold to crypto, to equity came under pressure while oil prices spiked.
What’s driving bitcoin prices?
The latest downturn in crypto markets adds to a broader decline that began in early October, when Bitcoin was trading above $120,000. The sharp correction since then has weakened investor sentiment, preventing any recovery attempts from gaining enough momentum to lift the cryptocurrency out of its slump.
According to Riya Sehgal, Research Analyst, Delta Exchange, Bitcoin’s fall comes against a backdrop of elevated oil prices, rising bond yields, and persistent inflation concerns driven by geopolitical tensions, which are tightening global liquidity conditions.
“Unlike typical risk-off environments, markets are witnessing mixed signals, with crypto showing resilience even as traditional safe havens like gold weaken under the pressure of a stronger dollar and higher yields,” Sehgal said.
Where’s Bitcoin headed in the near-term?
Nischal Shetty, Founder, WazirX, believes that the next short-term phase could be marked by consolidation of prices, flipping the performance trajectory of Bitcoin, which was outshining gold and US equities in terms of returns.
Shetty noted that Bitcoin is currently trading at $68,220. The move was driven by nearly $299 million in liquidations, with 85% losses coming from long positions. Bitcoin’s technical indicators stand between neutral and bearish, with most oscillators signalling short-term uncertainty.
“Moving averages are in strong sell territory, with RSI near 40 indicating the onset of oversold levels. Experts indicate undervaluation concerns as BTC moves below the current support level of $70k, although some may view this as a buying opportunity,” he said.
Meanwhile, on the technical outlook, Sehgal of Delta Exchange said that Bitcoin is holding a key support zone near $66,000–$67,000, while Ethereum is testing critical levels around $2,000, suggesting a fragile market structure in the near term.
“Additionally, structural shifts within crypto, including growing discussions around token-to-equity models and stronger value accrual mechanisms, indicate a maturing market. In the near term, price action is likely to remain range-bound, with macro developments continuing to dictate directional bias,” Sehgal added.
(With inputs from Bloomberg)
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
