Escalating geopolitical tensions are bolstering the U.S. dollar and lifting oil prices, intensifying pressure on a crypto market that is already on shaky footing.
Bitcoin is set to record its fifth consecutive weekly loss — the first time it has done so since March through May 2022, when it endured a nine-week slide.
As of Thursday in Asia, the world’s largest cryptocurrency by market capitalization was lower by around 3% on the week, trading below $67,000 based on CoinDesk data, and remains vulnerable to another negative weekly close.
Macro risks are compounding the technical deterioration. The Wall Street Journal reported that the United States has deployed its largest buildup of air power in the Middle East since the 2003 Iraq invasion. Although Washington is said to be positioned for potential strikes on Iran, President Donald Trump has not yet made a final decision. Traders on Polymarket are currently assigning a 27% probability to military action taking place before the end of the month.
The heightened uncertainty has pushed the dollar index up to 97.7, its strongest reading since early February, while WTI crude has advanced to $65 after falling to $62 a day earlier. A firmer greenback coupled with rising energy prices typically dampens demand for risk assets, reinforcing downside momentum and raising the odds of another weekly loss for bitcoin.
From its October record high near $126,500, bitcoin has now retreated more than 50%, sliding to levels around $60,000.
On a monthly basis, the cryptocurrency has posted five straight declines since October — its second-longest losing streak on record, surpassed only by the six-month downturn between 2018 and 2019.
Measured against gold, bitcoin has underperformed for seven consecutive months, marking its longest stretch of relative weakness versus the precious metal.
