 ▲ The United States, Iran, and Bitcoin (BTC) / ChatGPT-generated image © |
Geopolitical tensions between the United States and Iran have once again triggered extreme volatility in the cryptocurrency market, with Bitcoin (BTC), which had been on the verge of breaking through $74,000, ultimately falling below the $70,000 mark, heightening investor anxiety.
According to DL News on March 8 (local time), citing CoinGecko data, Bitcoin fell 3% over the past 24 hours to $68,005. After surging to $73,669 on Wednesday—buoyed by positive inflows into exchange-traded funds (ETFs) and surpassing $70,000 for the first time in a month—the price retreated sharply. Data compiled by Farside Investors showed that spot ETF investors cashed out a combined $576.8 million on Thursday and Friday, pushing Bitcoin down to around $68,000 by Saturday.
The core driver behind the latest decline is the escalating war crisis in the Middle East. As experts had warned, investor risk aversion surged immediately after the United States and Israel struck Iran on February 28, triggering a broad sell-off across the crypto market. Although Bitcoin briefly reclaimed the $70,000 level in midweek, renewed uncertainty following the outbreak of war intensified its correlation with the stock market and drove a fresh spike in volatility.
Market analysts note that the current turbulence is reviving painful memories of the past. Following last October’s brutal sell-off, which liquidated $19 billion in leveraged bets, Bitcoin had shown relatively subdued volatility compared to previous bear markets. However, another outbreak of war in the Middle East appears to have reignited the extreme price swings characteristic of cryptocurrencies.
The altcoin market mirrored Bitcoin’s downward trajectory. Ethereum (ETH), the second-largest cryptocurrency by market capitalization, climbed above $2,179 midweek but fell to $1,985 by Saturday morning in New York trading, posting a similar weekly decline to Bitcoin. XRP (Ripple), ranked fifth by market cap and recently active in U.S. spot ETF trading, also slipped about 1% over the past 24 hours to close at $1.36.
In sum, the sweeping macroeconomic wave of geopolitical crisis is overwhelming the recent positive momentum that had flowed into the market. As short-term profit-taking converges with war-related fears, the cryptocurrency market is expected to face persistent caution and heightened volatility for the foreseeable future.
Disclaimer: This article is for investment reference only and the publisher assumes no responsibility for any investment losses incurred based on this information. The content should be interpreted solely for informational purposes.