Bitcoin Near Two-Week Low…Risk Assets Move in Lockstep Amid Middle East Tensions

Bitcoin (BTC) slid to near two-week lows as geopolitical tensions in the Middle East intensified. Markets are increasingly viewing the move as tracking a broader pullback across risk assets.

According to Bloomberg on the 23rd, Bitcoin fell as low as $67,371 in early Asian trading, marking its lowest level since the 9th. It later pared some losses, trading choppily around $68,000.

The decline is seen as aligning with a risk-off shift driven by escalating tensions in the Middle East. Market jitters were fueled after President Trump demanded that Iran keep the Strait of Hormuz open and warned of possible strikes on power facilities. Iran, in turn, responded that it could target key infrastructure in the region, adding to the escalation.

Markets are pointing to geopolitics as a key driver of the spike in volatility. Rachel Lucas, an analyst at BTC Markets, said, “The main catalyst was geopolitical risk,” adding that Brent crude surged after President Trump’s 48-hour ultimatum.

Bitcoin is currently hovering around $68,000, where it is brushing up against the 200-week exponential moving average (EMA). This area is widely viewed as a key long-term support level. Pratik Kala, head of research at Apollo Crypto, said, “Historically, this zone has served as a buying opportunity from a bullish perspective.”

Still, sentiment remains subdued. Coinglass’s sentiment index stayed in the “extreme fear” zone for 25 of the past 30 days. US-listed spot Bitcoin ETFs also saw net outflows of about $308 million over three days since midweek last week, keeping supply-demand pressures in place.

Some are also questioning Bitcoin’s role as a safe-haven asset. Haider Rafique, global managing partner at OKX, said, “Recently, Bitcoin has been moving in the same direction as risk assets,” adding that “in this kind of environment, the safe-haven narrative is put to the test.”