Bitcoin (BTC-USD) slipped on Thursday as escalating geopolitical tensions between the US and Iran weighed on broader risk sentiment.
The world’s largest cryptocurrency by market capitalisation (BTC-USD) was hovering just above the $67,000 (£49,586) mark, down around 1.6% over the past 24 hours. The total global cryptocurrency market capitalisation also fell 1.6% to $2.38tn, reflecting a broader pullback across digital assets.
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Investors have moved away from risk-sensitive assets amid fears of a potential military escalation in the Middle East. The US dollar and oil prices have both strengthened in recent sessions, tightening financial conditions and adding pressure to assets such as bitcoin (BTC-USD), which tend to struggle in periods of heightened macro uncertainty.
The US has reportedly amassed its largest concentration of air power in the Middle East since the 2003 invasion of Iraq, fuelling concerns that military action against Iran could be imminent.
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According to Reuters, citing a senior US official, top national security advisers were told in a White House situation room meeting that all military assets should be in place by mid-March.
US president Donald Trump has repeatedly demanded that Iran halt its nuclear programme and has warned that force could be used if no agreement is reached. However, reports suggest he has yet to make a final decision on whether to authorise strikes.
Amid heightened geopolitical tensions, bitcoin (BTC-USD) is on track for a fifth straight weekly loss, a run of declines that would mark its longest losing streak in years and underscore the fragile tone across risk assets.
The sustained pullback reflects persistent downside pressure in recent sessions, with traders turning more defensive as safe-haven flows bolster the US dollar and oil prices. Bitcoin (BTC-USD) has retreated sharply from its October 2025 all-time high above $126,000, extending a broader correction that has seen the cryptocurrency fall by nearly 50% from its peak.
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Prices have since steadied in the mid-$60,000 range, but momentum remains weak, suggesting investors are waiting for clearer signals on both the macro backdrop and broader market risk appetite before re-entering aggressively.
Positioning in the derivatives market suggests traders are bracing for further volatility.