"Investor Sentiment Hit by War Fears"... Bitcoin Hits Lowest Level in 20 Days

As tensions in the Middle East intensify and instability rocks the financial markets, the cryptocurrency market is experiencing a broad decline. Bitcoin, in particular, has fallen below the $66,000 mark, clearly exhibiting a bearish trend.

According to CoinMarketCap, a global market tracking site, Bitcoin at one point on March 28 fell to the low $65,000 range, marking its lowest level in about 20 days. Over a 24-hour period, the decline was around 4%, a sharp drop compared to the previous day, when it had maintained the $70,000 level.

Major altcoins also declined alongside Bitcoin. Ethereum dropped below $2,000, while other top market cap coins, such as Ripple and Binance Coin, recorded declines in the 2% to 4% range. In some trading intervals, large-scale liquidation of long (buy) positions further heightened market volatility.

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The primary factor behind the market plunge is the so-called "Middle East risk." As military tensions between the United States and Iran escalate, fears of a broader conflict have grown, causing investor sentiment to deteriorate rapidly. Although the two countries are continuing negotiations, speculation about the possible deployment of ground troops is increasing uncertainty.

Additionally, concerns over a potential blockade of the Strait of Hormuz have driven international oil prices sharply higher. Both Brent crude and West Texas Intermediate (WTI) crude have surged above the $100 mark. Rising energy prices are intensifying inflationary pressures, which in turn are weighing heavily on risk assets across the board.

Traditional financial markets have also shown weakness. On the New York Stock Exchange, the Nasdaq Composite Index fell by more than 2%, and other major indices also declined. Rising interest rates and a strengthening dollar are further reducing the appeal of cryptocurrency investments.

Negative developments have emerged on the supply and demand side as well. Recently, there has been a continued outflow of funds from spot Bitcoin exchange-traded funds (ETFs), and with the expiration of Bitcoin options contracts worth approximately $14 billion, market volatility has increased. In fact, estimates show that hundreds of millions of dollars have exited the ETF market.

Investor sentiment is also significantly subdued. The "Fear & Greed Index," which measures the level of fear in the market, remains in the "extreme fear" territory.

Experts predict that ongoing concerns about prolonged warfare, inflation, and possible interest rate hikes may continue to exert pressure on risk assets as a whole.

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