Bitcoin price under pressure due to geopolitical tensions – is it likely to fall to $50,000?

The Bitcoin price is again under pressure. Investors are getting nervous about rising tensions over Iran, weak technology stocks and continued outflows from US ETFs. Bitcoin (BTC) fell below $67,000 again today and has now been in a downward movement for four weeks.

What started as a quiet correction now feels like a serious test of confidence in the market for many investors.

Bitcoin price follows weak stock markets

The Bitcoin price fell by more than three percent to approximately $66,700. This means that BTC is increasingly seen as a risky technology share. As soon as investors avoid risk, crypto also comes under pressure.

It is not only geopolitical tensions that play a role. Investors are reconsidering their expectations about interest rate cuts by the Federal Reserve, following recent inflation data from the United States. Slower interest rate cuts usually mean less liquidity, which affects risky investments such as crypto.

According to market experts, the correlation between macroeconomic news and crypto has increased significantly over the past year. A U.S. Supreme Court ruling on import tariffs later this week could have even more impact than the central bank’s minutes, they say.

Outflows from Bitcoin ETFs and Extreme Fear

Another sore point is the continued outflow from US spot ETFs. On balance, money was withdrawn from these funds for the fourth week in a row. Last week it was hundreds of millions of dollars. This puts pressure on sentiment, especially because ETFs previously provided optimism and an inflow of new capital.

The Fear and Greed Index is also deeply in the red. The indicator points to ‘extreme fear’ among investors. This means that many market parties are cautious or even completely on the sidelines.

Will support at $60,000 hold?

The big question now is where the bottom is. Many analysts are looking at $60,000 as key support. That level previously held up during corrections and is seen as a psychological limit.

Yet there is also a warning. If geopolitical unrest increases or stock markets decline further, confidence can quickly change. In that scenario, a decline towards $50,000 is not inconceivable.

For the time being, the Bitcoin price seems to be mainly waiting for a new stimulus. Until then, the market remains vulnerable and many investors feel this immediately in their portfolio.