Bitcoin (BTC) Price: Dips Below $70K as Iran Conflict and US CPI Data Weigh on Markets

TLDR

• Bitcoin fell 0.5% to ~$69,583 in Asian trading Wednesday
• BTC briefly recovered above $70K Tuesday after Trump suggested the Iran war could end soon
• US CPI data due Wednesday could impact Fed rate expectations and crypto sentiment
• Bitcoin spot ETFs saw $251 million net inflow on March 10
• The Crypto Fear & Greed Index remains at 15, still in “extreme fear” territory

Bitcoin dropped back below $70,000 in Asian trading on Wednesday, sliding 0.5% to $69,583.5 as of 01:55 ET. The move came after a brief recovery above the $70,000 mark on Tuesday.

The recovery Tuesday was partly driven by comments from US President Donald Trump, who said the conflict with Iran could be “pretty much” over. That pushed sentiment briefly into positive territory and helped Bitcoin climb back from the mid-$60,000 range seen earlier in the week.

Trump later posted on Truth Social that if Iran interfered with oil supply, the US would increase military pressure. Fighting between US, Israeli, and Iranian forces around the Gulf has continued.

Oil prices had spiked close to $120 a barrel after the Strait of Hormuz was effectively closed, cutting off key shipping routes. Prices pulled back after Trump’s initial comments but remain elevated.

Market intelligence platform Santiment reported that social media sentiment around Bitcoin shifted back to optimism Tuesday. Positive discussions rose across X, Reddit, and Telegram following Trump’s remarks and the oil price pullback.

Bitcoin Spot ETF Flows and Institutional Buying

Bitcoin spot ETFs recorded a total net inflow of $251 million on March 10. Strategy, a major institutional Bitcoin holder, purchased nearly 18,000 BTC last week and made a second purchase this week.

Ryan McMillin, CIO at Merkle Tree Capital, noted that Bitcoin has held above its February lows and shown resilience through geopolitical pressure. He said short positions could face a squeeze toward $80,000.

Rachael Lucas, crypto analyst at BTC Markets, said reclaiming $70,000 publicly reignites fear of missing a move, pointing to it as a key resistance level.

Crypto Fear & Greed Index Still in Extreme Fear

Despite improved social media sentiment, the Crypto Fear & Greed Index sat at 15 on Wednesday, still rated “extreme fear.” Google Trends data for “Bitcoin” scored around 71, down from a peak of 100 on March 5.

US CPI data is due later Wednesday. The figures could shape Federal Reserve interest rate expectations and influence risk appetite in crypto markets.

Progress on the stalled CLARITY Act is also being watched. US senators are reportedly exploring a compromise on stablecoin yield rules, a sticking point between banks and crypto firms.

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