Bitcoin fell to around $66,200 on March 28 as investors lost confidence in US-led de-escalation efforts following reports of continued Israeli strikes during the Iran pause.
The S&P 500 dropped to a six-month low while rising Treasury yields tightened financial conditions, increasing pressure on risk assets including cryptocurrencies and equities.
Markets are now interpreting President Donald Trump’s 10-day pause on energy strikes as a delay in escalation rather than a step toward peace, driving broader risk-off sentiment.
Bitcoin’s price action has remained weak, with intraday rebounds failing to hold as macro pressures including inflation risks and elevated oil prices weigh on investor positioning.
Higher Treasury yields are reducing liquidity and raising the cost of capital, reinforcing Bitcoin’s correlation with tech stocks rather than acting as a geopolitical hedge.
In previous cycles, geopolitical tensions sometimes supported Bitcoin, but current market dynamics are dominated by expectations of fewer rate cuts and sustained macro tightening.
Until there is clear progress toward de-escalation and stabilisation in yields, crypto markets are likely to remain under pressure with downside risks prevailing in the near term.
At the time of reporting, Bitcoin price was $65,776.24.