Bitcoin Dips Under $67K on Iran Tensions Liquidity Sweep

Tension in Iran keeps Bitcoin under pressure

Bitcoin price experienced a notable decline, dropping below the critical $70,000 threshold as geopolitical tensions between the United States and Iran intensified, coinciding with a widespread sell-off across risk assets that triggered the liquidation of several late long positions in BTC.

At the opening of Tuesday’s Wall Street session, Bitcoin fell beneath $67,000, mirroring the behavior of broader risk assets amid emerging geopolitical strains. This movement highlighted Bitcoin’s sensitivity to global events, particularly as it joined traditional stocks in a synchronized downturn at the commencement of the US traditional finance trading week.

Market data from TradingView indicated daily price losses exceeding 3.8% for Bitcoin on the Bitstamp exchange, underscoring the severity of the pullback.

Both Bitcoin and various altcoins participated in the sell-off alongside major US stock indices during the initial US trading session of the week. This reaction stemmed from heightened market anxiety surrounding Iran’s naval exercises in the Strait of Hormuz, a vital shipping lane for global oil supplies. Concurrently, discussions between the US and Iran, characterized by the latter as realistic and constructive, wrapped up around the same period, adding layers of uncertainty to the market dynamics.

At the time of reporting, the S&P 500 and Nasdaq Composite Index had declined by as much as 1.25%, while gold prices retreated to lows around $4,842 per ounce, illustrating a broad-based aversion to risk across asset classes.

Examinations of liquidity conditions on exchanges revealed significant bid walls still present in the spot order books near the $60,000 level, as observed by commentary accounts on X such as Exitpump. These analyses suggested a potential sweep of range lows for the BTC/USD pair in the near term, based on order book data from platforms like Binance and Coinbase.

Monitoring tools like CoinGlass further illustrated how the price action sliced through adjacent bid liquidity zones during the descent, amplifying the downward momentum.

The previous day had already seen volatility primarily driven by liquidity hunts, impacting both long and short positions in Bitcoin and contributing to the ongoing price fluctuations within established ranges.

Crypto trader, analyst, and entrepreneur Michaël van de Poppe described the situation succinctly, noting that Bitcoin remained confined within a specific range and was merely consolidating. He emphasized that this phase represented a waiting period until volatility subsided, paving the way for potential expansion.

Investor O’Leary repeats Bitcoin quantum worries

Despite positive developments such as Strategy, the entity holding the largest corporate Bitcoin treasury globally, acquiring nearly 2,500 BTC over the past week, the market sentiment remained subdued and unresponsive to this accumulation.

Executive chairman Michael Saylor confirmed that Strategy’s total Bitcoin holdings had increased to 717,131 BTC, with an average cost basis slightly above $76,000, yet this news failed to bolster bullish momentum amid prevailing pressures.

Simultaneously, on-chain analytics pointed to possible outflows from US spot Bitcoin exchange-traded funds (ETFs). For instance, reports highlighted BlackRock depositing substantial amounts of BTC and ETH to Coinbase Prime, signaling potential redistribution or selling pressure within institutional channels.

Over the weekend, Shark Tank cohost and venture capitalist Kevin O’Leary reiterated concerns in mainstream media about quantum computing potentially compromising Bitcoin’s security framework, which he believes is deterring larger institutional participation.

In his FOX News interview, O’Leary affirmed his long position on Bitcoin but highlighted the emerging quantum risk as a significant worry for a portion of sophisticated investors. He explained that this uncertainty led institutions to limit their Bitcoin exposure to just 3% of their overall portfolios as a precautionary measure.

These combined factors—geopolitical flare-ups, liquidity dynamics, institutional hesitations, and quantum computing fears—continued to exert downward pressure on Bitcoin, keeping it within a tight range as traders awaited clearer signals for the next directional move. The interplay of these elements demonstrated Bitcoin’s evolving role in global markets, where macroeconomic and technological narratives significantly influence short-term price action.

Market participants remained vigilant, monitoring order books, on-chain flows, and external news for indications of whether the current consolidation would resolve upward or lead to further tests of lower support levels. This environment underscored the importance of liquidity in dictating volatility, particularly during periods of heightened global uncertainty.