Bitcoin slipped below $70,000 for the first time in more than a week, pressured by a broader market selloff amid renewed attacks on Middle East energy infrastructure.
The world’s largest cryptocurrency fell as much as 3.4% to $68,799 on Thursday before paring some of the loss. Bitcoin extended a decline from the previous day, when it saw its largest drop in three weeks. Other cryptocurrencies such as Ether, Solana and XRP also declined.
Bitcoin has traded within a relatively tight range of roughly $65,000 to $75,000 over the past two months. On Tuesday, it briefly climbed to a six-week high of almost $76,000, suggesting a short-lived recovery in momentum, but the coin has not consistently held above that level since January. Bitcoin is still down about 40% from its record high in October.
“The leading cryptocurrency has more room to move within the $65,000 to $75,000 range,” said Alex Kuptsikevich, chief market analyst at FxPro. “Breaking out of this range may require more momentum to determine the market’s direction for the coming days or weeks.”
Bitcoin has largely weathered the war with the Middle East conflict, which broke out at the end of February, better than many traditional assets. Rising tensions on Thursday have led to more surges in oil, sparking a risk-off attitude across global markets and fueling fears that central banks will need to tighten policy to keep inflation in check.
“The spectre of stagflation is hovering, with the combination of rising prices and stagnating growth posing a real threat,” Susannah Streeter, chief investment strategist at Wealth Club, said in a note Thursday.
Bitcoin exchange-traded fund flows, which had shown signs of stabilizing and recovering this month, reversed course on Wednesday, recording roughly $150 million in outflows.