Bitcoin fell to its lowest level since the start of the Iran conflict as renewed geopolitical tensions in the Middle East weighed on broader market sentiment and triggered a fresh wave of risk-off positioning across global assets.
The world’s largest cryptocurrency dropped more than 5% to below US$62,000 in early Singapore trading on Thursday, marking its weakest level since February 6. The decline extends a sharp weekly sell-off of around 16%, which began after Strategy Inc reportedly sold about US$2.5 million worth of its Bitcoin holdings.
The move has unsettled market sentiment given Strategy’s role as one of the largest corporate holders of Bitcoin, with its stock widely viewed as a proxy for the cryptocurrency under a digital asset treasury model.
According to Animoca Brands chief investment officer Josh Du, the sale has dented investor confidence in the “never sell” narrative previously associated with the firm, adding that Bitcoin faces further downside risk amid tightening macroeconomic conditions and rising oil prices.
He noted that the combination of geopolitical uncertainty and shifting sentiment around major holders could pressure Bitcoin to break below the US$62,000 level that has acted as a key support zone since the escalation of the Iran conflict.
The sell-off also highlights Bitcoin’s divergence from equity markets, which have recently reached record highs even as the cryptocurrency weakens. Bitcoin has now lost more than half of its value since its peak above US$126,000 in October last year.
Broader crypto markets were also under pressure, with Ether falling to its lowest level since April 2025. Data from CoinGlass showed about US$1.5 billion in bullish positions were liquidated over the past 24 hours, further amplifying volatility in the sector.
Meanwhile, investors have pulled nearly US$4 billion from US-listed Bitcoin exchange-traded funds over the past 12 sessions, marking a record streak of outflows and underscoring weakening institutional demand.
Bloomberg
