Bitcoin Extends Losses as Geopolitical Tensions Rise
Bitcoin declined on Monday, continuing its weekend losses as market sentiment weakened following limited progress in U.S.-Iran ceasefire negotiations. Rising geopolitical tensions and plans for a U.S. naval blockade against Iran weighed on investor risk appetite.
The world’s largest cryptocurrency fell 0.9% to $71,022.5 by 02:30 ET (06:30 GMT), reversing earlier gains that had been supported by initial optimism around diplomatic talks.
Market Sentiment Hit by Failed US-Iran Talks
Investor confidence deteriorated after negotiations showed little sign of de-escalation. U.S. President Donald Trump ordered a blockade of the Strait of Hormuz, although officials later clarified that the move would primarily target Iranian ports and vessels.
The blockade, scheduled to begin at 10:00 ET, raises the likelihood of further military escalation in the Middle East. It also signals potential disruptions in global shipping and energy markets.
Macro Risks Weigh on Crypto Demand
While cryptocurrencies are not directly tied to energy supply chains, broader economic disruptions can negatively impact global growth. This, in turn, reduces demand for higher-risk assets such as Bitcoin.
Additional pressure came from U.S. inflation data, which showed a sharp rise in consumer prices during March, largely driven by higher energy costs linked to the Iran conflict.
Bhutan Reduces Bitcoin Holdings Significantly
Bhutan has reportedly sold around 70% of its Bitcoin reserves since October 2024, according to data from Arkham Intelligence. The country’s holdings have dropped to approximately 3,954 BTC, valued at around $280.6 million.
This marks a significant decline from its peak position of roughly 13,000 BTC in late 2024, when holdings were estimated at about $1.4 billion. The reasons behind the large-scale sell-off remain unclear, as does the current status of Bhutan’s Bitcoin mining operations.
Altcoins Trade Sideways Amid Uncertainty
The broader cryptocurrency market showed limited movement, with most altcoins trading in a narrow range as uncertainty surrounding the Iran conflict kept traders cautious.
Ethereum declined 0.8% to $2,197.73, while XRP posted a modest gain of 0.4% to $1.3352. Other major tokens, including Solana, Cardano, and BNB, recorded minimal changes of less than 1.5%.
Among memecoins, Dogecoin and TRUMP remained largely unchanged.
