Simply put
- Bitcoin fell below $67,000 as tensions in the Middle East and rising yields weighed on risk assets.
- More than $1.33 billion was liquidated this week, with highly leveraged positions piling up between $70,000 and $75,000.
- Experts expect short-term behavior to be unstable, with a possible bailout rebound depending on the easing of macro pressures.
Bitcoin The broader crypto market continues to rack up losses this week as March draws to a close, with experts expecting range-bound price action and increased volatility in the short term.
The major cryptocurrency fell to a low of $66,400 on Friday, Bitcoin’s lowest level since March 9, according to data from CoinGecko. It is currently trading at $66,633, down 3.9% in the past 24 hours and down 5.6% this week, according to CoinGecko data.
Andri Fauzan Azima, head of research at crypto exchange Vitrue, said that this week’s decline in Bitcoin is mainly driven by macroeconomic risk-off conditions due to geopolitics, including the Middle East war. decryption.
The spillover effects of the war have caused oil prices to rise, raising concerns that inflation will continue. Bitcoin has continued to outperform gold and the U.S. stock market since the war began on February 28, but Bitcoin fell more than 6% from more than $75,000 to less than $70,000 last week after the U.S. Federal Reserve kept interest rates on hold.
“Bitcoin, like every other macro asset, is trading in line with geopolitical headlines,” said Tabib Rahman, research analyst at Brock Shoals, a crypto research platform. decryption. “President Trump’s uncertain tone yesterday regarding a possible ceasefire coincided with Bitcoin’s fall to $67,000.”
The 10-year U.S. Treasury yield rose for the fourth straight week on geopolitical pressures and mixed messages over the U.S.-Iran war.
The dollar index rose 0.57% this week to 100.148, continuing to weigh on risk assets such as Bitcoin.
According to data from CoinGlass, more than $1.33 billion was liquidated this week despite Bitcoin’s relatively narrow price range of $72,000 to $66,200. This “reflects the accumulation of highly leveraged positions above current levels, particularly those of $70,000 to $72,000 and up to $73,000 to $75,000, reducing liquidity,” Azima said.
Users of Prediction Markets Owned by Myriad decryptionDastan, the parent company of Bitcoin, became bearish on the outlook for Bitcoin, pegging the chance of the next price increase at 56%, and it rose 10% on the day to $55,000.
Experts continue to expect increased volatility and potentially volatile price movements in the short term, with the potential for recovery in the medium term, provided macro and geopolitical pressures ease.
“The thin volume over the weekend raises the possibility of a rapid decline in liquidity towards support at $67,000 to $68,000 first,” Azima explained.
From a macro perspective, Myriad users estimate a 66% chance that oil prices will rise to $120 on the next move, highlighting an uncertain geopolitical landscape.
