Bitcoin continued to hover near $70,000 on Thursday, pressured by escalating geopolitical conflicts and upcoming derivatives events that have intensified volatility across the cryptocurrency market. The world’s largest digital asset slipped about 1% to $70,712 in 24-hour trading, fluctuating between $70,558 and $71,985 as traders reacted to mounting uncertainty and cautious sentiment.
Trump’s Foreign Policy Signals Weigh On Markets
Market participants closely tracked reports that U.S. President Donald Trump, who is currently leading American diplomatic and military strategies, has privately stated his intention to resolve the ongoing U.S.-Iran conflict within four to six weeks. Trump has been reported to want the confrontation finalized before a planned May meeting with Chinese President Xi Jinping in Beijing, emphasizing that his attention is being diverted from domestic issues and the upcoming midterm elections. Notably, the international community has been awaiting clarity on the U.S. approach toward Iran. The crypto market’s sensitivity to such geopolitical signals has become increasingly evident, with risk assets displaying immediate reactions to every significant policy development.
Iran’s Demands And Diplomatic Stalemate
Tehran rejected Washington’s recent ceasefire proposal and presented its own series of conditions for de-escalation. Iran’s requirements include the removal of all U.S. economic sanctions, compensation for damages, expanded authority in the Strait of Hormuz, the right to maintain its ballistic missile program, and guarantees against further U.S. military actions. The heightened diplomatic standoff has added to the prevailing nervousness in global markets.
Amid the ongoing tensions, White House spokesperson Karoline Leavitt issued a strong warning:
The U.S. will hit Iran harder than they have ever been hit before if Tehran doesn’t make an agreement to end the conflict.
Oil prices have also risen alongside these developments, reflecting how energy market movements are becoming a core factor in the cryptocurrency market’s responses to Middle Eastern geopolitics.
Options Expiry And Derivatives Dynamics
Traders are also bracing for the expiration of about $16 billion in Bitcoin and Ethereum options contracts this Friday. Historically, such expiry events have triggered bursts of short-term volatility in digital asset prices. Futures-driven trading dominated recent sessions, with Bitcoin open interest climbing by $500 million to $16.5 billion in the past 24 hours. Funding rates have turned positive, reaching 0.03% during this interval.
Despite rising derivatives activity, spot market participation in the U.S. remained subdued, with data showing a cumulative volume delta of negative $87 million and a drift lower in the Coinbase premium. This suggests that American demand for Bitcoin has weakened, and that fresh momentum would require a renewed wave of spot buying.
A $60 million buy order was recorded in New York trading hours, signifying some continued institutional appetite, but analysts point out that consistent follow-through is needed to push prices decisively higher. Market commentator Skew described Bitcoin’s current setup as a “compression zone” where limited price range can lead to an eventual breakout, provided there is strong spot accumulation and resilience against selling pressure.
On social media, analyst Ali Charts remarked that speculative market participants have recently abandoned their positions. He noted that Bitcoin’s realized capitalization for new holders has dropped to lows often seen before periods of renewed accumulation, indicating that longer-term investors may be positioning for the next potential leg higher.
Technical analysts are monitoring the $71,500 resistance as a crucial threshold. A breakout above this level could invite renewed bullish momentum and set the stage for a possible advance toward $80,000, though near-term risks remain prominent until macro and derivatives-driven headwinds dissipate.
