 ▲ Bitcoin Plunges Sharply © |
Amid a double blow of massive profit-taking by short-term investors and escalating geopolitical tensions in the Middle East, bitcoin (BTC), which had surged past $74,000, has ultimately been pushed down to the $67,000 support level, walking a precarious tightrope.
According to CoinMarketCap on March 7 (local time), bitcoin recorded $68,029.83, down 2.96% over the past 24 hours, leading a broader market downturn. It has shown a strong negative correlation of minus 64% with gold, a traditional safe-haven asset, indicating a clear risk-off sentiment driven by macroeconomic uncertainty.
The primary drivers behind this decline are intense selling pressure from short-term holders and outflows from institutional spot exchange-traded funds (ETFs). On March 6, short-term investors transferred approximately 27,000 bitcoins—worth about $1.86 billion—to exchanges to realize profits, marking the largest volume since mid-January. Additionally, U.S. spot bitcoin ETFs, which had seen several consecutive days of inflows, reversed course on March 5 with net outflows of $228 million, further fueling the downturn.
Adding to the pressure, President Donald Trump’s warning of potential additional military action against Iran heightened tensions in the Middle East, further freezing investor sentiment. Brent crude oil prices surpassed $90 per barrel for the first time since 2023, stoking inflation fears. As a result, the total cryptocurrency market capitalization fell 2.42%, weighed down by a stronger dollar and rising energy prices.
Bitcoin is currently testing the critical $67,000 support level while facing initial resistance at $70,000. As of the 7th, the Relative Strength Index (RSI) stood at 46.22, indicating neutral momentum, but declining trading volume suggests weakening buying pressure. The market has entered a cautious wait-and-see mode, and if the $67,000 support level decisively breaks down, there is a risk of further decline toward the 50% Fibonacci retracement level of $67,063.
Ultimately, on-chain profit-taking and macroeconomic headwinds are outweighing recent positive institutional developments, putting continued pressure on the market. With the upcoming U.S. Consumer Price Index (CPI) release on March 12 expected to serve as the next key macro trigger, whether bitcoin can firmly defend the $67,000 support level until then will be the decisive factor in determining its near-term trajectory.
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