Bitcoin dropped below the $70,000 mark during Wednesday’s Asian session, falling 0.5% to $69,583. The decline followed a brief surge above $70,000 on Tuesday, driven by global geopolitical developments and changing investor sentiment.
Geopolitical Headlines Move Markets
Tuesday saw Bitcoin’s price jump after US President Donald Trump suggested the Iranian conflict could soon be settled. Trump followed up with a warning on Truth Social, stating that any attempt by Iran to disrupt the flow of oil through the Strait of Hormuz would result in a far stronger US response than previously seen. Despite this, ongoing tensions in the Gulf region continued to impact both energy and crypto markets.
Trump is the current US president, well known for market-influencing social media activity, especially during times of global crisis. His recent public messages have often corresponded with volatility in digital asset prices and broader market sentiment.
Crude oil had surged to near $120 per barrel following blockages in the Strait of Hormuz, a critical transit route for global energy supplies. While oil values eased after the US president’s comments, they remained elevated, keeping inflation concerns in focus.
ETF Inflows And Institutional Market Activity
Spot Bitcoin ETFs listed in the United States recorded a combined $251 million in net inflows on March 10. The IBIT fund by BlackRock led with $186 million in daily inflows, indicating persistent institutional interest amid overall market unease. At the same time, corporate crypto investor Strategy purchased roughly 18,000 BTC last week, followed by additional acquisitions this week.
Merkle Tree Capital Chief Investment Officer Ryan McMillin noted that Bitcoin has remained above its February lows, holding steady through geopolitical turbulence. McMillin commented that short sellers may face growing risk if the price approaches the $80,000 range.
Rachael Lucas, a BTC Markets analyst, pointed out that reclaiming the $70,000 level usually amplifies market FOMO, describing this price as a strong resistance zone.
Santiment, a blockchain analytics provider, tracked a marked improvement in social media sentiment on Tuesday, particularly across platforms like X, Reddit, and Telegram. The more optimistic mood emerged after Trump’s remarks and the easing in oil prices.
Extreme Fear Persists Amid Sentiment Indicators
Despite some uplift in social chatter, core sentiment gauges remain negative. The Crypto Fear & Greed Index held at 15 on Wednesday, indicating persistent “extreme fear.” Meanwhile, Google Trends data showed diminished public interest, with search activity for “Bitcoin” at 71, down from a recent high of 100 seen on March 5.
Some market commentators have highlighted technical indicators, including the monthly relative strength index (RSI), which suggests that Bitcoin’s cycle bottom may not yet have materialized. Analysis points to the RSI needing to fall below 40 for a clear recovery signal to emerge.
Looking ahead, the release of the United States Consumer Price Index later on Wednesday could prove decisive for markets. The results are expected to influence the Federal Reserve’s approach toward interest rates and could shift risk-taking appetite within both crypto and traditional investment circles.
Market observers are also following the progress of the stalled CLARITY Act, as US lawmakers work toward a compromise over stablecoin yield regulation—a disputed topic that divides traditional banks and crypto businesses.
