 ▲ Bitcoin falls to the $67,000 range amid escalating Middle East tensions… Investor sentiment freezes again/ChatGPT-generated image © |
Bitcoin has given up most of the gains that pushed it as high as $74,000 earlier this week, slipping back below $68,000, as a strong U.S. dollar and geopolitical risks in the Middle East dampen upward momentum across the broader digital asset market.
According to cryptocurrency media outlet CoinDesk on March 7 (local time), Bitcoin (BTC) fell about 3.4% to around $67,960. This marks a significant retreat from the approximately $74,000 high reached earlier in the week and is seen as a reappearance of the “late-week selling” pattern that has repeated in recent months.
Major altcoins also showed weakness. Ethereum (ETH) declined about 4.4% to $1,974, while Solana (SOL) fell 4% to $84.31. Dogecoin (DOGE) dropped roughly 2.9% to $0.09, BNB slid 2.6% to $627, and XRP (Ripple) lost about 2.2% to trade at around $1.37.
On a weekly basis, however, some analysts note that the market has not fully turned bearish. Over the past seven days, BTC has risen about 3.6%, while ETH and BNB gained 2.6% and 2.1%, respectively. Although the sharp rally earlier in the week had absorbed much of the shock from the Middle East conflict, Friday’s correction erased a significant portion of those gains.
The macro environment continues to weigh on the digital asset market. The U.S. dollar posted its largest weekly gain in a year, strengthened by rising energy prices, inflationary pressures, and expectations that the Federal Reserve may delay interest rate cuts. The stronger dollar has exerted direct downward pressure on dollar-denominated assets such as Bitcoin.
On-chain data also indicates structural fragility in the market. According to Glassnode, about 43% of Bitcoin’s circulating supply is currently in a loss position. These investors may be more likely to sell to break even during price rebounds, creating persistent selling resistance during upward moves. However, Messari reported that net stablecoin inflows surged 415% over the past week to approximately $1.7 billion, suggesting that sidelined capital could potentially re-enter the market.
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