Analysts predict that if geopolitical conflicts escalate further, Bitcoin may test the $60,000 support level.
PANews reported on March 30th that, according to The Block, due to the ongoing US-Iran conflict, the price of Bitcoin has fallen from approximately $71,000 last week to around $67,000, having briefly dipped to $65,000 on Saturday. Rachael Lucas, a crypto analyst at BTC Markets, stated that Bitcoin briefly reached $72,000 this week due to hopes of a diplomatic breakthrough in the Middle East, but as those hopes faded and concerns about oil supply resurfaced, the price gave back its gains. She pointed out that the situation in the Strait of Hormuz exacerbates inflation concerns, making it difficult for the Federal Reserve to cut interest rates, thus putting pressure on crypto prices. Jeff Mei, COO of BTSE, stated that oil and gas prices will remain high in the short term and drag down economic growth, therefore crypto prices still have room to fall, and Bitcoin may drop to the $60,000 support level.
Andri Fauzan Adziima, Head of Research at Bitrue, believes the market will remain volatile and news-driven. If the US-Iran conflict escalates, Bitcoin could fall to $60,000; if the situation eases and oil prices fall, it could rebound above $70,000. BTC Markets analyst Lucas also points out that retail investors are currently panicked, mostly adopting a wait-and-see or hedging approach, while institutional investors are moving in the opposite direction. US spot Bitcoin ETFs saw inflows of over $1.13 billion this month, ending four consecutive months of net outflows; Strategy continues to increase its holdings, and Morgan Stanley is about to launch a low-fee Bitcoin ETF. She stated that when there is a clear divergence between retail panic and institutional accumulation, historical experience shows that institutional judgments are often more accurate.
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