Bitcoin It fell to its lowest level from May on the weekend as tensions in the Middle East and updated fears of inflation have led to rapid sales across digital assets.
Bitcoin fell below the $99,000 mark on Sunday as the crypto market became the first to respond to an escalation of geopolitical risk.
Bitcoin has traded at around $99,380, compared to a decline of more than 2% in the last 24 hours. ether We reduced 5% to under $2,200. Solana, XRPand Dogecoin He also posted sharp losses, dragging the entire crypto complex deep into the red.
The sale appears to be a combination of geopolitical shocks and macroeconomic concerns.
Iran reportedly threatened to block the Strait of Hormuz, a key transport lane that handles around 20% of the world’s oil supply. jpmorgan It warns that a complete closure could drive oil prices as high as $130 per barrel.
One well-known macro research firm points out that such a spike can bring us back inflation to 5%. This is a level not seen since March 2023, when the Fed was still actively raising prices.
That outlook is where traders reassess the interest rate path and spins from crypto-like speculative assets.
Bitcoin is often pitched as an inflation hedge, but it now behaves like a high beta high tech stock. According to Crypto’s data provider Kaiko, the correlation between Bitcoin and the technologically high NASDAQ has risen sharply in recent weeks after hitting months’ lows earlier this year.
It appears that institutional positioning has also shifted.
More than $1.04 billion flowed into Bitcoin ETFs from last Monday through Wednesday, according to Coinglass data. However, these influxes collapsed towards the weekend, with zero net moves on Thursday and just $6.4 million on Friday, coinciding with President Donald Trump’s early G7 departure and a two-week U.S. options review on Iran.
Technical breakdown added fuel to the sale.
Coinglass research shows Bitcoin drops below $99,000 and is being forced to sell across offshore derivative platforms such as Binance and Bybit. At its peak on Sunday, more than $1 billion in crypto positions were liquidated over the course of 24 hours. This highlights how over 95% comes from long bets and how the market is overexposed over the weekend.
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