Investing.com — is on track to finish the week in the red as the intensifying war in the Middle East continues to drain investor appetite for riskier assets. The leading cryptocurrency slipped about 4.13% to trade at $66,030.2 at 18:46 ET (22:48 GMT) following a brief, news-driven rally earlier in the session.
Analysts note that the market’s center of gravity has shifted from the initial oil price shock to a broader “rates shock,” with the ongoing U.S.-Israeli conflict with Iran effectively erasing hopes for a near-term pivot in global monetary policy.
Geopolitical gridlock and yield pressure
The latest leg down was exacerbated by a massive $14.16 billion options expiry on Friday, which saw over $115 million in long positions liquidated in a single hour. However, the underlying bearish pressure is largely fueled by the war and sticky inflation.
Investors fled to the safety of the U.S. dollar as Iran threatened to expand its maritime operations in the Bab el-Mandeb Strait, complementing the effective closure of the Strait of Hormuz. prices remain elevated, pushing the U.S. 10-year Treasury yield to its highest level since July 2025, creating a massive headwind for non-yielding assets like Bitcoin.
Market outlook and range-bound volatility
Despite the prevailing gloom, some institutional observers maintain that the current pullback reflects a reset in sentiment rather than a total breakdown in fundamentals. Bernstein analysts recently reiterated a bullish year-end target of $150,000.
The analysts argued that Bitcoin has historically outperformed gold as a portable, censorship-resistant asset during periods of extreme uncertainty. The technical picture remains fragile, and a daily close below the crucial $66,000 support level could trigger a deeper breakdown toward the $50,000 range.
As the 48-hour window for de-escalation narrows and talks remain at a standstill, the focus for the markets stays firmly on regional military developments. Investors are increasingly favoring the safety of the U.S. dollar over the volatility of the crypto space, leading to a noticeable rotation of capital.
Until a credible ceasefire is reached, Bitcoin is expected to remain trapped in a high-volatility range, dictated more by the bond market’s reaction to the conflict than by internal industry catalysts.
Crypto price today: altcoins fall, set for 5% weekly loss
Broader crypto prices largely retreated early Saturday, tracking Bitcoin.
World no.2 crypto Ether fell 3.86% to $1,985.91, and was down 7.51% for the week.
lost 2.81% to $1.3245, set for a weekly loss of 8.32%.
and Cardano declined 4.7% and 3.52%, respectively.