Key Highlights
- Bitcoin holds around $67K as geopolitical tensions around the Strait of Hormuz keep global markets on edge.
- Institutional flows remain mixed, with ETF shifts and whale activity signaling a transition from buying to caution.
- Despite volatility, BTC stability is driven by lingering institutional demand and risk-off sentiment across markets.
Bitcoin (BTC) is under pressure as tensions near the Strait of Hormuz rise, putting markets on edge. Despite this, BTC has held steady around $67K, according to market maker Wintermute.
As of writing, according to CoinMarketCap, the top cryptocurrency was trading at $68,391.98, down 1.81% in the past 24 hours.
Last week saw sharp swings: Iran suggested it could end the conflict with security guarantees, sending the S&P 500 up 3.4% and briefly pushing oil down from $111 to $105 per barrel. But Trump’s primetime address, warning of further strikes on Iran, quickly reversed the moves, lifting WTI by 11% and Brent above $112.
The situation escalated Friday after U.S. combat aircraft were lost and Iran struck Gulf refineries. A 45-day ceasefire plan has emerged, but uncertainty remains. Wintermute analysts warned, “If Tuesday’s ‘Power Plant Day’ threat happens and Iran retaliates, the oil risk premium rebuilds immediately.” Markets are now reacting sharply to every headline, pricing in extreme outcomes.
Institutional flows support BTC amid market stress
Digital assets showed mixed performance last week. Bitcoin ($BTC) rose 2%, while Ethereum ($ETH) gained 4.2%, showing solid stability. The Fear & Greed Index sits at 34 as of writing, signaling extreme fear, and social sentiment remains very negative.
Institutional demand continues to support Bitcoin: ETFs bought about 50,000 BTC in March, Strategy added 44,000 BTC, and Morgan Stanley got NYSE approval for a spot BTC ETF, giving 16,000 advisors direct access.
Recent data shows a change. The last week of March saw $414 million in ETF outflows, exchange whale ratios jumped, and corporate treasury buying slowed.
Wintermute’s OTC data suggests institutions are moving from buying to neutral, edging toward net selling as geopolitical risks linger. Despite this shift, institutional demand remains the main factor keeping BTC in its current range.
Altcoins and technical trends
Ethereum (ETH) grew popular because staking was becoming an attractive strategy amid high interest rates. The price of Solana (SOL) fell below $80 after the $285 million Drift Protocol hack, the biggest DeFi hack this year so far. In general, altcoins underperformed, declining by 0.3%, indicating that people are investing in BTC and ETH.
As for the technical situation, Bitcoin continues trading in a range, and Ethereum trades under the 200-week moving average. This means there is some support for both cryptos, but Ethereum seems promising due to positive developments in shorter timeframes.
Also Read: Dormant Bitcoin Whale Dumps 300 BTC at Loss as Market Moves Sideways
