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Bitcoin declined sharply on Thursday, tracking broader losses across cryptocurrencies and global risk assets after renewed escalation signals in the Middle East dampened investor sentiment.
The world’s largest cryptocurrency fell 2.9% to $66,465.7 as of 01:29 ET (05:29 GMT), extending losses after a moderately positive start to April. Despite the pullback, Bitcoin remains largely range-bound, trading within levels seen for most of the year.
Escalation Signals Trigger Market Selloff
Investor confidence weakened after Donald Trump said the United States would intensify military operations against Iran over the next two to three weeks.
Trump reiterated that Washington is close to achieving its military objectives and warned that Iran must accept a deal or face strikes on its energy infrastructure. His remarks marked a clear shift away from earlier signals suggesting a possible de-escalation.
Iran has denied engaging in direct negotiations with the United States and rejected claims that it had sought a ceasefire, reinforcing uncertainty around any near-term diplomatic resolution.
The renewed tensions triggered a broad selloff in risk-sensitive assets, with Asian equities and U.S. stock futures also posting notable declines.
ETF Inflows Offer Limited Support
Despite the recent price weakness, institutional demand showed some improvement. Bitcoin exchange-traded funds recorded their first monthly inflow since October, with net inflows of approximately $1.2 billion in March.
The inflows come after four consecutive months of outflows and follow a significant correction in Bitcoin prices, which had fallen as much as 50% from their late-2025 peak.
While Bitcoin outperformed some speculative assets during March, it remains under pressure on a year-to-date basis, down roughly 24% in 2026.
Altcoins Slide as Sentiment Weakens
Broader cryptocurrency markets also moved lower, reflecting deteriorating risk appetite. Ether dropped 4.7% to $2,049.22, while XRP declined 3.6% to $1.3139.
Other major tokens saw steeper losses, with Solana, Cardano, and BNB falling between 4% and 7%. Among meme tokens, Dogecoin dropped 4.6%, while $TRUMP lost 5.6%.
Market Outlook
Crypto markets remain highly sensitive to geopolitical developments and macroeconomic trends. The latest escalation signals have reinforced concerns about energy-driven inflation and tighter monetary policy, both of which tend to weigh on speculative assets.
Unless tensions ease or clearer policy direction emerges, volatility in cryptocurrencies is likely to remain elevated, with downside risks persisting in the near term.
