Bitcoin trades below recent highs as Middle East tensions pressure crypto market

Bitcoin price action amid heightened geopolitical risk

According to The Block's bitcoin price page, bitcoin was up 0.34% in the past 24 hours to trade at $66,966 as of 11:15 p.m. ET on Sunday. The world’s largest cryptocurrency briefly crashed on Saturday, falling to $65,000. Despite this rebound, it remains below last week’s levels of around $71,000 and is down 47% compared to its all-time high of $126,080 recorded in October 2025.

Rachael Lucas, crypto analyst at BTC Markets, described the recent move as a “classic risk-off unwind.” She noted that bitcoin touched $72,000 mid-week on hopes of a diplomatic breakthrough in the Middle East, then surrendered those gains “as those hopes faded and oil supply concerns resurfaced.”

The Block's crypto Fear & Greed Index currently stands at 9, indicating “extreme fear” in the market. This backdrop reflects broader risk aversion as investors respond to rising geopolitical and macroeconomic uncertainty.

Oil, inflation concerns, and diverging investor behavior

Lucas highlighted that the situation around the Strait of Hormuz is worsening inflation fears, which in turn is seen as preventing the Federal Reserve from cutting interest rates. According to her, this dynamic is weighing on crypto prices. The U.S.-Iran conflict continues, with Iran launching strikes on nearby Gulf states such as Kuwait and Saudi Arabia, while peace talks remain in a deadlock.

Jeff Mei, COO at BTSE, stated that oil and gas prices are likely to remain elevated and “drag on economic growth in the near future.” In this context, Mei said BTSE believes crypto prices have further downside potential, with bitcoin possibly falling toward the $60,000 support level.

At the same time, investor flows show a divergence between retail and institutional participants. Lucas noted that spot bitcoin ETFs in the U.S. reported over $1.13 billion in monthly inflows, ending four consecutive months of negative total monthly flows. She also pointed to Strategy’s continued buying and Morgan Stanley’s upcoming low-fee bitcoin ETF launch as notable institutional developments. Lucas said that when “retail fear and institutional accumulation diverge this sharply, history suggests the institutions tend to be right.”

FAQ

What is bitcoin’s current price level and recent performance?
As of 11:15 p.m. ET on Sunday, bitcoin traded at $66,966, up 0.34% over the past 24 hours, after briefly dropping to $65,000 on Saturday and remaining below last week’s roughly $71,000 level.

How does bitcoin’s current price compare with its all-time high?
Bitcoin is down 47% from its all-time high of $126,080, which was recorded in October 2025.

What is driving current pressure on crypto prices?
Analysts point to rising geopolitical tensions in the Middle East, concerns over oil supply and inflation, and expectations that the Federal Reserve will delay interest rate cuts, all of which contribute to a risk-off environment.

How are institutional and retail investors behaving in this market?
According to BTC Markets’ Rachael Lucas, retail investors are showing fear while institutional investors are accumulating, as evidenced by over $1.13 billion in monthly inflows into U.S. spot bitcoin ETFs and continued institutional product activity.