(March 18): Bitcoin retreated from a six-week high after a broader risk-off move swept across global financial markets amid growing concern of an escalation in the conflict in the Middle East.
The largest cryptocurrency dropped as much as 3.6% on Wednesday to around US$71,900 in New York. Earlier this week, Bitcoin climbed to nearly US$76,000 — its highest level since the start of February. Smaller, more volatile tokens also declined, with Ether and Solana each falling around 5%.
“The market turned risk-off after the reports of Israel’s attack on the South Pars oil facility in Iran,” said Hanson Birringer, managing director at Flowdesk. “We are sensing weakness in crypto as a result of this paired with a broader tech selloff in equities.”
The pullback also reflects a familiar pattern seen in recent weeks, where rallies above US$70,000 have struggled to gain traction. Short-term holders continue to exhaust each rally at those levels, absorbing momentum before any breakout can develop, according to blockchain data firm Glassnode.
Bitcoin is down about 40% from an all-time high of around US$126,000 reached in early October. Demand has ebbed amid a combination of a shifting US monetary policy outlook, geopolitical instability and a reversal in institutional demand.
See also: Bitcoin surprises as oasis of calm while Iran War jolts markets
Spot market signals are mixed but constructive, while on-chain activity remains relatively muted, the firm said in a report this week, adding that “overall, market conditions are showing signs of stabilisation and gradual recovery.”
Inflows to exchange-traded funds suggest a return of institutional confidence. Net flows for US-listed spot Bitcoin ETFs topped US$750 million in the past week, a third consecutive week of inflows.
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