Key Moments
- Bitcoin traded down 2.1% at $68,183 by 10:01 ET (14:01 GMT) after briefly topping $70,000 on Monday.
- Risk sentiment weakened as markets focused on U.S. President Donald Trump’s 8 p.m. ET deadline for Iran to reopen the Strait of Hormuz.
- Bitcoin ETFs recorded $471.3 million in combined daily inflows, the strongest since late February, with no funds seeing outflows.
Risk-Off Mood Pushes Bitcoin Lower
Investing.com – Bitcoin declined on Tuesday, dropping beneath the $69,000 mark as risk appetite softened ahead of U.S. President Donald Trump’s deadline for Iran to reopen the Strait of Hormuz or face potential military action.
The leading cryptocurrency was last down 2.1%, trading at $68,183 by 10:01 ET (14:01 GMT).
Bitcoin had briefly climbed above $70,000 on Monday, supported by optimism over a possible ceasefire, but the move was short-lived as prices pulled back.
Iran Standoff Undermines Market Sentiment
Market confidence deteriorated after Iran rejected a U.S.-backed ceasefire proposal and instead demanded broader conditions, increasing fears of further escalation.
Trump reiterated a stark warning that Iran could be “taken out” if it fails to meet the 8 p.m. ET deadline, and he has threatened to strike critical infrastructure, including power plants and bridges.
The confrontation has rattled global markets, driving oil prices above $110 per barrel amid disruptions in the Strait of Hormuz, a major conduit for global crude shipments.
Rising energy costs have intensified inflation concerns and pushed investors toward traditional safe havens such as the U.S. dollar.
Bitcoin has been moving more closely with broader risk assets, and the rise in geopolitical uncertainty has overshadowed the earlier optimism linked to diplomatic efforts.
Macro Focus Shifts to U.S. Inflation Data
Attention is also turning to upcoming U.S. economic releases, particularly the March consumer price index report scheduled for Friday.
Higher energy prices stemming from the Middle East conflict are expected to lift inflation readings, which could reinforce views that interest rates will remain elevated for an extended period.
Such an environment has typically been challenging for Bitcoin, which tends to struggle when borrowing costs stay high.
Bitcoin ETFs Log Strongest Daily Inflows Since Late February
Despite the pullback in spot prices, Bitcoin exchange-traded funds (ETFs) saw robust demand on Monday as investors positioned ahead of the Tuesday-night Iran deadline.
Combined inflows across Bitcoin ETFs reached $471.3 million, marking their largest single-day increase since late February.
| ETF | Provider | Daily Inflows (USD) |
|---|---|---|
| IBIT | BlackRock | $181.9 million |
| FBTC | Fidelity | $147.3 million |
| ARKB | ARK | $118.8 million |
| All Bitcoin ETFs (combined) | – | $471.3 million |
IBIT, managed by BlackRock, led the pack with $181.9 million in inflows. Fidelity’s FBTC attracted $147.3 million, while ARKB saw $118.8 million, according to SoSoValue data.
No Bitcoin ETF recorded outflows during the session.
Altcoins Extend Losses as Caution Dominates
Altcoins broadly moved lower on Tuesday, deepening earlier declines amid the risk-off tone.
| Cryptocurrency | Move | Price / Change |
|---|---|---|
| Ethereum | World no. 2 crypto | fell 3.9% to $2,073 |
| XRP | World no. 3 crypto | dropped 3.3% to $1.30 |
| Solana | – | shed around 4% |
| Polygon | – | shed around 3% |
| Cardano | – | dipped more than 5% |
| Dogecoin | Meme token | lost 2.6% |
World no.2 crypto Ethereum fell 3.9% to $2,073, while world no. 3 crypto XRP declined 3.3% to $1.30.
Solana and Polygon each retreated, dropping around 4% and 3% respectively, and Cardano slid more than 5%.
Among meme-focused tokens, Dogecoin was also weaker, down 2.6%.
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