Key Points:
- Bitcoin fell to around $65,700 following President Trump’s speech on the Iran conflict.
- Oil prices surged past $111 a barrel, causing investors to flee risky assets like crypto.
- Large investors, or “whales,” are selling off their holdings instead of buying more.
- Bitcoin remains 45% below its record high as demand for the digital currency stays weak.
Bitcoin is struggling to stay afloat as the war in the Middle East continues to cause chaos. On Thursday, the digital currency dropped about 3.6%, landing near $65,700 before recovering slightly. Other big names like Ether and Solana took even harder hits. Investors are clearly nervous about what comes next, especially after hearing the latest news from Washington.
The recent price drop follows a major speech from President Trump. On Wednesday, he promised to keep up the military campaign in Iran. This news crushed any hopes that the shipping lanes in the Strait of Hormuz would open back up soon. Because of this, oil prices skyrocketed to over $111 a barrel, making everyone worried about long-term inflation.
Analysts at FxPro noted that Trump’s comments triggered a sharp selloff because people saw no signs of peace. For weeks, Bitcoin has been stuck in a tight range between $66,000 and $69,000. It seems to be following the stock market’s lead, falling whenever investors decide to move their money into safer options like cash or commodities.
While Bitcoin actually did better than gold in March, the long-term picture looks pretty grim. The token is currently down about 45% from its peak of $126,000 back in October. Even though it broke a five-month losing streak last month, the actual demand for new Bitcoin just isn’t there right now.
Data shows that the “whales”—the people who own massive amounts of Bitcoin—are not buying. Instead, they have become net sellers over the past year. This suggests that the biggest players in the market don’t have much faith that prices will go up soon. Without these big buyers, it is hard for the price to gain any real momentum.
The popular Bitcoin ETFs are also seeing trouble. On Wednesday, investors pulled $174 million out of these funds. While March saw some money coming back into crypto, those gains are quickly vanishing as the war drags on. For now, most traders are sitting on the sidelines, waiting for some actual good news before they risk their cash again.
