Bitcoin’s (BTC-USD) recent attempt to stabilize is being challenged as geopolitical risk moves back to the forefront of markets. Following comments from US President Donald Trump indicating that tougher strikes against Iran could be coming in the weeks ahead, sentiment across risk assets appeared to weaken, with cryptocurrencies moving lower alongside equities. Bitcoin fell as much as 2.9% to around $66,300 in London trading, while Ether declined up to 5.2% and Solana posted similar losses. The shift in tone also coincided with a partial reversal in MSCI’s Asia Pacific Index and a move higher in Brent crude above $108 per barrel, suggesting investors are adjusting positioning as expectations for a near-term resolution to the conflict fade.
This marks a reversal from earlier in the week, when Trump had suggested he might consider ending the war before any disruption to the Strait of Hormuz, a key global trade route. That earlier signal had supported a more constructive backdrop, but the latest comments appear to have reintroduced volatility across asset classes. Bitcoin has recently shown somewhat reduced sensitivity to macro developments, yet it continues to broadly track equity market direction in episodes of heightened uncertainty. The token had posted a roughly 2% gain in March, breaking a five-month losing streak, even as traditional safe-haven assets like gold declined more than 11% amid concerns tied to inflation and potential energy supply disruptions.
Beneath price action, underlying demand indicators continue to point to hesitation among investors. Bitcoin remains down about 45% from its October peak above $126,000, and CryptoQuant data showed apparent demand was negative by roughly 63,000 coins as of late last month. Large holders, often referred to as whales, have been net sellers over the past year, while both institutional and retail participants appear to be waiting for clearer signals before deploying capital. This cautious stance is also reflected in flows, with US-listed spot Bitcoin exchange-traded funds recording $174 million in net outflows on Wednesday. Taken together, the combination of geopolitical uncertainty, regulatory questions around the Clarity Act, and subdued on-chain activity could keep Bitcoin trading without a firm directional trend in the near term.
Read More: Bitcoin drops 2.9% as Trump signals tougher Iran strikes — TradingView News
