This article first appeared on GuruFocus.
Bitcoin (BTC-USD) slipped below $70,000 for the first time in almost two months, as investors pulled back from riskier assets amid concerns over the conflict in Iran and fresh selling pressure from Strategy (NASDAQ:MSTR). The largest cryptocurrency fell as much as 3% on Tuesday to its lowest level since April 8, trading around $69,500 at 6:30 a.m. in New York. Ether and Solana also moved lower, showing that the weakness was not limited to Bitcoin alone.
The pressure came as US equity futures also softened after more than a week of gains, with traders watching for signs of progress toward a peace deal with Iran. President Donald Trump has struggled to make headway toward an agreement, leaving markets to digest mixed signals around the possibility of a lasting ceasefire. Antonio Di Giacomo of XS.com said recent attacks and limited progress toward peace have increased risk aversion across global markets, a backdrop that typically favors traditional safe-haven assets while putting more volatile instruments such as cryptocurrencies under added pressure.
Bitcoin’s setup could be getting more fragile because two major demand supports have recently turned into headwinds. Strategy disclosed its first sale of the token since late 2022, disposing of about $2.5 million from its $59 billion stockpile, while US spot Bitcoin ETFs saw net outflows for a record 11 straight days, with investors pulling almost $3.5 billion over that period. CoinShares’ James Butterfill said progress on US crypto-market legislation has been overwhelmed by risk-off sentiment tied to Iran, while FalconX’s Sean McNulty warned that a confirmed daily or weekly close below $70,000 would suggest a structural shift rather than just a headline-driven reaction.