BTC tests key support amid rising liquidations and macro stress, with ETF inflows providing partial stability.
Bitcoin has dipped to its lowest level in weeks, a victim of escalating global tensions rattling investors. This decline has sparked significant liquidations, and market sentiment has soured, plunging into fear. As a result, cryptocurrencies are now mirroring the broader market’s movements rather than maintaining their own course.
BTC Slips to Key Support as Global Risks Drive Investor Caution
Bitcoin’s value fell to $67,371 earlier today, the lowest it’s been since March 9th. It then found some stability, hovering around $68,000, which coincides with the crucial 200-week support level.
Therefore, holding above it remains essential to avoid a deeper downside. Meanwhile, pressure across risk assets intensified following developments in the Middle East. US President Donald Trump warned of potential strikes on Iran’s power infrastructure if the Strait of Hormuz remains restricted.
In response, Iran issued threats targeting regional infrastructure. These exchanges heightened uncertainty across global markets and prompted investors to adopt a cautious stance.
According to Rachael Lucas, an analyst at BTC Markets, crypto is not acting as a safe haven under current conditions. In fact, market data appears to support that view, and instead of diverging, Bitcoin moved in line with broader risk assets.
Crypto Market Stress Builds as $781M Liquidations Follow BTC Dip
Several indicators also point to rising stress across the market. The Fear and Greed Index has dropped to 25, placing sentiment deep in extreme fear territory. At the same time, Brent crude’s rally has shifted expectations around US monetary policy.
Odds of a rate hike have climbed from 0% to 12.4% over the past week, reflecting inflation concerns tied to energy prices.
From a technical standpoint, levels remain clearly defined. Immediate support sits at $68,000, while a breakdown could expose $65,800. On the upside, Bitcoin needs to reclaim $71,500 to regain bullish structure.
Until that happens, price action may remain range-bound with downside risk. Even so, institutional demand continues to provide some stability. Spot Bitcoin ETFs have recorded $1.43 billion in net inflows so far this month. This steady capital flow contrasts with weak retail sentiment and suggests underlying accumulation.
Furthermore, liquidations have accelerated during the recent move lower. Data from CoinGlass shows $781 million wiped out across the crypto market in the past 24 hours. Bitcoin long positions accounted for nearly $104 million of that total, reflecting aggressive positioning ahead of the drop.
Image Source: Coinglass
Lucas added that a de-escalation in geopolitical tensions could trigger a sharp rebound in crypto markets. However, the current conflict lacks a clear timeline or resolution path. As a result, uncertainty may continue to weigh on sentiment in the short term.
