In brief
- Bitcoin dropped under $67,000 as Middle East tensions and rising yields pressured risk assets.
- Over $1.33 billion was liquidated this week, with heavy leveraged positions stacked between $70,000 to $75,000.
- Experts expect choppy near-term action with potential relief rally contingent on easing macro pressures.
Bitcoin and the broader crypto market continue to stack losses this week as March comes to a close, with experts anticipating rangebound price action and increased volatility in the near term.
The leading crypto dropped to lows of $66,400 Friday, Bitcoin’s lowest level since March 9. It is currently trading at $66,633, down 3.9% in the past 24 hours and 5.6% on the week, according to CoinGecko data.
Bitcoin’s drop this week is primarily driven by macroeconomic risk-off conditions resulting from the geopolitics, involving the Middle East war, Andri Fauzan Adziima, research lead at cryptocurrency exchange Bitrue, told Decrypt.
The ripple effects of this war have raised oil prices, leading to fears of sticky inflation. Though Bitcoin continues to outperform gold and the U.S. stock market since the war began on February 28, it dropped over 6% from over $75,000 to below $70,000 as the U.S. Federal Reserve kept the interest rates steady last week.
“Like all other macro assets, Bitcoin is trading to geopolitical headlines,” Thahbib Rahman, research analyst at crypto research platform Block Scholes, told Decrypt. “Trump’s uncertain tone yesterday around the likelihood of a ceasefire coincided with Bitcoin falling to $67,000.”
In addition to geopolitical pressure, 10-year U.S. Treasury yields rose for four consecutive weeks in response to the confusing mixed messages around the U.S.-Iran war.
The U.S. dollar index rose 0.57% this week to 100.148, continuing to weigh down on risk assets, including Bitcoin.
Despite Bitcoin’s relatively tiny range, extending from $72,000 to $66,200, over $1.33 billion has been liquidated this week, CoinGlass data show. That reflects “heavy leveraged positions stacked above current levels, especially $70,000 to $72,000, and up to $73,000 to $75,000, with thinner liquidity on the downside, Adziima said.
Users of Myriad, a prediction market owned by Decrypt’s parent company Dastan, turned bearish on Bitcoin’s outlook, putting a 56% chance on its next move taking it to $55,000, up 10% on the day.
Experts continue to expect heightened volatility and a potential choppy price action in the near term, with a potential relief rally in the mid-term, contingent on easing macro and geopolitical pressures.
“Thin weekend volume raises odds of a quick liquidity sweep lower toward $67,000 to $68,000 support first,” Adziima explained.
From a macro perspective, Myriad users assign a 66% chance that oil’s next move could see it rally to $120, underscoring the uncertain geopolitical landscape.
