Bitcoin Drops Below $69K as Iran Deadline Weighs on Markets
Bitcoin moved lower on Tuesday, falling below the $69,000 level as investor risk appetite weakened ahead of U.S. President Donald Trump’s deadline for Iran to reopen the Strait of Hormuz or face potential military action.
The world’s largest cryptocurrency was last trading 2.1% lower at $68,183 during early U.S. hours.
Failed Break Above $70K Signals Weak Momentum
Bitcoin had briefly surged above $70,000 on Monday, driven by optimism around a possible ceasefire. However, the rally proved short-lived, with prices quickly reversing as geopolitical tensions intensified.
Rising Tensions Between the U.S. and Iran
Market sentiment deteriorated after Iran rejected a U.S.-backed ceasefire proposal, instead pushing for broader conditions. This raised fears of further escalation in the region.
President Trump warned that Iran could face severe military consequences if it fails to meet the deadline, including potential strikes on critical infrastructure such as power plants and bridges.
Oil Prices Surge, Driving Risk Aversion
The ongoing standoff has unsettled global markets, with oil prices climbing above $110 per barrel due to disruptions in the Strait of Hormuz, a key route for global crude supply.
Higher energy prices have increased inflation concerns and pushed investors toward traditional safe-haven assets like the U.S. dollar.
Bitcoin, which has increasingly traded in line with broader risk sentiment, came under pressure as geopolitical uncertainty overshadowed earlier optimism.
Inflation Data and Fed Outlook in Focus
Investors are now closely watching upcoming U.S. economic data, particularly the March CPI report. Rising energy costs tied to the Middle East conflict are expected to push inflation higher.
This could strengthen expectations that interest rates will remain elevated for longer, a scenario that typically acts as a headwind for Bitcoin and other risk assets.
Bitcoin ETFs See Strong Inflows
Despite the price decline, Bitcoin exchange-traded funds (ETFs) recorded their largest daily inflows since late February on Monday.
Total inflows reached $471.3 million, with BlackRock’s IBIT leading at $181.9 million. Fidelity’s FBTC and ARKB followed with inflows of $147.3 million and $118.8 million, respectively.
Notably, no ETF recorded outflows during the session, indicating continued institutional interest.
Altcoins Extend Losses Across the Board
The broader cryptocurrency market also remained under pressure, with most altcoins posting further losses.
Ethereum dropped 3.9% to $2,073, while XRP declined 3.3% to $1.30. Solana and Polygon fell around 4% and 3%, respectively, and Cardano lost more than 5%.
Among meme cryptocurrencies, Dogecoin slipped 2.6%, reflecting the overall cautious market sentiment.
