Bitcoin (CRYPTO: BTC) pulled back from its recent tilt toward the $70,000 threshold as geopolitical tensions in the Middle East intensified concerns about oil supply and global inflation. The closure of the Strait of Hormuz sparked a broad risk-off mood, with equities slipping and safe-haven assets showing mixed performance. By midday, BTC hovered near the $66,000 area after retreating from its earlier highs, underscoring how macro headlines continue to drive crypto liquidity and price action. A data point from TradingView highlighted a roughly 3.2% intraday decline, reinforcing traders’ focus on momentum and key technical levels in a volatile environment.

Key takeaways

• Bitcoin (CRYPTO: BTC) failed to sustain a move toward $70,000 as energy-market tensions resurfaced following Hormuz-related disruptions.
• Major equity indices were weaker at the open, with the S&P 500 and Nasdaq each down around 2%, and gold also retreating as risk appetite deteriorated.
• BTC price action remained range-bound and failed to break through critical trend lines, a dynamic traders described as evidence of persistent bearish pressure.
• Analysts linked the session to a broader risk-off cycle driven by oil supply concerns and potential inflationary stress, affecting both crypto and traditional markets.
• While some voices cautioned that BTC could see a rotation opportunity if macro conditions stabilize, the near-term path remained uncertain.

Tickers mentioned: $BTC

Sentiment: Bearish

Price impact: Negative. BTC dropped about 3.2% on the day, returning to the $66,000 region as volatility in oil and cross-asset liquidity weighed on prices.

Market context: The move sits within a broader risk-off backdrop where energy-market shocks, inflation concerns, and geopolitical headlines shape appetite for both traditional assets and digital currencies. The episode underscored how crypto trading remains tethered to macro risk sentiment and liquidity dynamics that can shift quickly in response to geopolitical developments and energy data.

Why it matters

The day’s price action sheds light on Bitcoin’s evolving role in diversified portfolios during periods of geopolitical stress. As oil markets react to potential supply disruptions, the resulting spillovers to equities and currencies can compress risk-on assets, including digital currencies. The observed dynamics imply that BTC is not immune to macro shocks and that its appeal as an inflation hedge or portfolio diversifier may be contingent on broader liquidity conditions and investor risk tolerance.

For market participants, the session highlighted the importance of risk controls and scenario planning. While some analysts had suggested a rotation from gold into BTC as a store of value during periods of stress, the evidence from this single session indicates a more nuanced relationship. The price resilience of BTC in some shorter timeframes contrasts with the larger-timeframe momentum that favored bears, suggesting a wait-and-watch period for a clearer directional signal.

Looking ahead, the interplay between oil-market volatility, inflation expectations, and crypto liquidity will likely calibrate how traders approach BTC in the near term. If macro headwinds ease and risk assets stabilize, BTC could retest upside levels; if not, a continuation of range-bound trading or further downside pressure remains plausible. Investors should monitor whether BTC can reclaim key levels or remain anchored in a consolidative range while macro headlines evolve.

What to watch next

• Oil-price trajectories and official updates on energy supply risks, particularly around chokepoints like Hormuz, over the next several sessions.
• BTC price levels: watch for a decisive move above $70,000 or a clear break below $66,000 to signal a new short- or medium-term direction.
• General risk sentiment: observe moves in the S&P 500 and Nasdaq for continued correlation or decoupling from crypto markets.
• Geopolitical developments: any escalation or de-escalation could rapidly reframe liquidity and volatility in crypto markets.

Sources & verification

Market reaction and key details

Bitcoin (CRYPTO: BTC) traded in a narrow corridor as macro headlines continued to drive prices. The market faced a risk-off tilt after the Strait of Hormuz closed, amplifying concerns about oil-supply interruptions and potential inflationary pressures. In this environment, equities pulled back and safe-haven assets vacillated, with gold not providing the shelter some had anticipated. Data from TradingView captured BTC’s movement, showing a roughly 3.2% decline on the day and a retreat toward the $66,000 mark. The price action followed a broader pattern of cross-asset sensitivity to geopolitical risk and energy-market signals.

“The market is beginning to price-in a longer war,” The Kobeissi Letter wrote on X, reflecting a shift in risk perception as geopolitical tensions persisted.

From a technical standpoint, traders highlighted that BTC once again failed to flip key trend lines that would signal renewed bullish conviction. Keith Alan, cofounder of Material Indicators, observed that “So far $BTC bulls have failed to muster any momentum,” underscoring the lack of a clear breakout above resistance levels. A weekly chart review suggested a memory-like pattern of consolidation spanning 2021 through late 2024, with recent rallies not carrying the DNA of a sustained bull recovery.

“After losing the 2021 Top and the 21-Day SMA again, I’m having flashbacks to March – Nov 2024 when we endured 8 months of consolidation in this range. Nothing about Monday’s rally has the DNA of a bull recovery.”

Despite the bearish tone, some participants sought opportunities in the near term. A widely cited observation from traders noted that, relative to other assets, Bitcoin appeared to hold up better than some precious metals during the crisis, a theme that prompted discussions of potential capital rotation. Yet the prevailing consensus emphasized that volatility remained elevated and that BTC’s intermediate-term direction would hinge on how the oil-market dynamics and inflation outlook evolved in the days ahead.

“Not doing the worst since the escalation in the middle east. Actually outperforming stocks & precious metals for a change,” commented Daan Crypto Trades, highlighting the nuanced performance within a broad risk-off phase.

As the session progressed, gold came under pressure as macro concerns persisted. Nik Bhatia, founder of The Bitcoin Layer, described gold as “absolutely smashed,” while noting it had posted year-to-date gains of around 16%. This juxtaposition—gold weakening even as Bitcoin remains in a tight range—helped illustrate the complexity of risk markets during this period. Some observers, including Michaël van de Poppe, suggested that a rotation of capital from gold to BTC could be underway, a narrative that would require more data to confirm but remains a subject of debate among market watchers.

What’s next in the oil-BTC dynamic

The current episode underscores how energy-market shocks can feed into crypto liquidity, especially when inflation expectations are in flux. As traders reassess macro scenarios, BTC could either test higher resistance levels if risk appetite returns or continue trading within a defined range until new catalysts emerge. The next steps will hinge on how quickly energy markets stabilize, how central banks respond to any escalation in oil prices, and whether risk-on assets regain footing in a global environment of heightened uncertainty.

WASHINGTON, D.C. — Crypto perpetual futures have largely developed offshore because of the U.S. reluctance to pursue industry regulations, said U.S. Commodity Futures Trading Commission Chairman Mike Selig, and his agency will soon provide guidance on how that business should be handled.

Such derivatives contracts, which don’t expire and are often associated with leverage, have been an area of high interest to the industry. U.S. exchange Kraken, for instance, recently announced a move into perpetual futures for tokenized stocks for non-U.S. users.

Selig’s agency is “working towards getting professional futures, true professional futures here in the U.S. within the next month or so,” he said at a Milken Institute event in Washington on Tuesday. “We expect to announce that very soon.”

“The prior administration drove a lot of these firms and the liquidity offshore,” he noted.

That was a theme of his remarks and those from his U.S. Securities and Exchange Commission counterpart, Chairman Paul Atkins. As they’ve often done lately to underline their shared mission on digital assets, which they call Project Crypto, the two appeared together on stage and highlighted their unified approach.

One of the things the two are pursuing are “innovation exceptions” to allow for crypto experimentation without fear of regulatory crackdown. Selig said they’ll also soon define how decentralized finance (DeFi) developers are approached after years of prosecution and regulatory uncertainty.

Selig, who can act on his own because he’s currently the only member on the CFTC’s five-member commission, also said prediction markets — an overlapping cousin of the crypto sector — will get “guidance in the very near future” from the regulator. “We’re going to be setting very clear standards.” And he said the agency is also working on a more fulsome rulemaking process to soon give that position more permanent footing than guidance, which is procedurally easy to eliminate and rewrite.

Oversight of the events-contracts firms, including such leaders as Polymarket and Kalshi, is under dispute, with state gambling regulators pressing their own authorities over the firm’s sports contracts. Selig stepped forward to combat that in courts, arguing the CFTC’s position as a lead regulator of such firms’ activities.

“They can exist in parallel,” he said Tuesday of the two regulatory regimes. 

Atkins, though, delved into one of the drawbacks of the regulators’ current work: legal standing. Despite Atkins’ earlier confidence that the SEC can forge ahead without new laws directing its crypto work, he said on Tuesday, “We really do need statutory certainty.”

“We need the sense of Congress,” he said.

A U.S. Supreme Court decision two years ago removed a significant degree of authority that federal regulators enjoyed in court disputes over their actions, so agencies going it alone on policy guidance doesn’t carry the weight it once did. Agencies such as the SEC and CFTC can more easily be challenged, and their positions also easily reversed by future officials arriving at the commissions.

The U.S. Senate is still working on the Digital Asset Market Clarity Act that’s meant to establish a regulatory system for the U.S crypto markets. That legislative effort remains jammed up in negotiations involving the industry, bankers, lawmakers from both parties and the White House. Its chances for passage in 2026 grow more difficult with each day, as midterm elections approach and available Senate floor time dwindles.

Read More: The chief of the SEC is headlining an event sponsored by a crypto firm at war with it

Bitcoin miners are increasingly moving away from holding bitcoin on their balance sheets by selling more BTC to fund new identities as players in artificial intelligence (AI) infrastructure.

What started as holding onto bitcoin at all costs, or HODLing, is becoming a thing of the past for most publicly listed miners as they move into the capital-intensive but more attractive business of AI infrastructure. With tougher competition, higher energy costs and compressed prices, the profit margin for mining bitcoin, which during the 2021 bull run reached as high as 90%, has vanished, leaving miners who relied solely on that business struggling. Given that miners already have data centers ready to host AI computing machines, most have shifted their business away from bitcoin to become “AI infrastructure” companies.

This momentum is gaining more traction as prices sit roughly at $66,000, down nearly 50% from October’s all-time high. Many of the top 10 public miners are selling or openly discussing sales to fund these AI expansions.

Here are some miners that are either moving away from the bitcoin business by selling more BTC or have completely shifted into AI:

IREN (IREN) has never taken an ideological stance on holding bitcoin, focusing instead on infrastructure scale and operational execution as it leans into high-performance computing. The company currently holds 0 BTC, underscoring its lack of a treasury-driven strategy.

TeraWulf (WULF) has maintained a pragmatic posture, avoiding a hardline treasury approach while preserving balance sheet flexibility for AI aligned growth. It holds 15 BTC, in line with its historical peak, reflecting minimal emphasis on accumulation.

Cipher Digital (CIFR), formerly Cipher Mining, has made its repositioning explicit, calling 2025 a transformative year as it pivots toward HPC infrastructure. The company divested its 49% stake in three mining joint ventures for roughly $40 million in stock. Cipher now holds 1,500 BTC, down from an all-time high of 2,284 BTC, highlighting a gradual reduction alongside its structural shift.

Riot Platforms (RIOT) has treated bitcoin as a funding tool rather than a passive reserve, selling all monthly production and liquidating balance sheet holdings, including nearly 1,100 BTC to finance the Rockdale acquisition. Riot sold $200 million worth of bitcoin in the final two months of 2025. It currently holds 18,005 BTC versus peak holdings of 19,368 coins.

Hut 8 (HUT) said bitcoin is no longer a long-term strategic focus in its fourth-quarter earnings call, with exposure set to decline over time in favour of its equity stake in American Bitcoin (ABTC), which holds 6,039 BTC. Hut 8’s own balance stands at 13,696 BTC, unchanged from its peak.

Core Scientific (CORZ) sold $175 million of bitcoin as its AI pivot accelerated. After holding 2,537 BTC at year’s end 2025, its balance has dropped to around 630 BTC, well below its 9,618 BTC high watermark.

MARA Holdings (MARA) has softened its strict HODL identity, selling newly mined bitcoin and signaling it may buy or sell opportunistically, with about 28% of holdings loaned or pledged. It still holds 53,822 BTC, matching its all-time high, despite the more flexible policy.

CleanSpark (CLSK) treats its more than 13,000 BTC as productive capital, monetizing output, layering covered calls, and exploring bitcoin-backed credit lines as non-dilutive financing. Its current 13,513 BTC balance is in line with its historical peak.

Bitdeer Technologies (BTDR) reduced holdings to zero to fund AI data center expansion. That marks a massive drop from its prior peak of 2,470 BTC.

Bitfarms (BITF) has been blunt about its repositioning, with CEO Ben Gagnon stating, “We are no longer a Bitcoin company.” The miner now holds 1,827 BTC, down from a peak of 3,301 BTC, as it doubles down on AI infrastructure.

Yesterday’s modest rally in stocks in response to a new Middle East war breaking out over the weekend — for the moment — appears to have been a headfake.

In mid-morning U.S. hours, the Nasdaq is at session lows, down 2.5%. The S&P 500 is lower by 2.3%. European markets are being hit even harder, led by a 5.2% plunge in Italy’s IBEX 35 and a 4.1% fall in Germany’s DAX.

Having run up to historic highs in the weeks leading up to the war, precious metals are tumbling as well. Gold is lower by 4.3%, silver by 7.5% and platinum by 11.3%. WTI crude oil continues to surge, up another 8% to $77 per barrel.

Having declined relentlessly for about the last five months, crypto markets are, however, showing a tiny bit of relative strength. Trading at $68,000, bitcoin is down 1% over the past 24 hours, but higher by more than 2% from its worst levels of the day.

Also down over the past day, but nicely higher from the session’s worst levels are ether (ETH), solana (SOL) and XRP (XRP).

There’s no such bounce yet in crypto-related stocks, which remain under heavy selling pressure on Tuesday.

Shares of trading platform Robinhood (HOOD) dropped 7%, while Coinbase (COIN) fell 5%. Strategy (MSTR) and crypto platform Bullish (BLSH) each declined 4%. Stablecoin issuer Circle (CRCL) held up better but still slipped about 1%.

“Historically, bitcoin, as the only liquid asset that also trades on weekends, has absorbed shocks during periods of forced risk reduction,” said James Butterfill, head of research at CoinShares. “This time, the price development was constructive, bitcoin gained despite the increasing instability … This divergence is significant. The absence of significant liquidations despite rising yields and geopolitical tensions suggests that positioning is adjusted compared to previous episodes.”

New paper flags risk to bank funding just as payments giants ramp up tokenized settlement.

The European Central Bank (ECB) has fired a shot across the bow of the stablecoin industry, warning that widespread use of private tokens could undermine its grip on monetary policy and squeeze traditional lenders’ funding bases. In a new research paper, the ECB argues that if euro‑denominated stablecoins gain serious traction inside the bloc, they could “weaken the effectiveness of monetary policy” by siphoning deposits out of commercial banks and into tokenized rails that sit at the edge of the regulated system. The authors caution that such a shift could “hamper lenders’ ability to support the real economy,” especially in stress scenarios where deposit flight accelerates.

The warning lands just as major payment firms move to normalize stablecoin settlement. SoFi and Mastercard recently unveiled a partnership that will allow SoFiUSD, a fully reserved dollar stablecoin, to be used for settlement across Mastercard’s global network, spanning SoFi Bank and its Galileo platform. Visa, meanwhile, is expanding its collaboration with Bridge, aiming to bring stablecoin‑linked cards to more than 100 countries, after seeing volume on Bridge “more than quadruple” last year. Industry advocates frame these moves as proof that stablecoins are evolving into mainstream payment infrastructure rather than just trading collateral, with crypto.news already tracking how tokenized cash is bleeding into everything from remittances to Web3 gaming payouts.

Regulators see a different risk profile. A recent breakdown of U.S. policy debates around stablecoin “rewards” versus deposit‑like “yield” shows how central banks and lawmakers worry that pseudo‑savings products could replicate money‑market‑fund fragility inside crypto wrappers. The ECB paper effectively extends that concern to Europe, signalling that any large‑scale euro stablecoin usage will likely face tight MiCA‑era constraints on reserves, disclosure and access to the central bank backstop.

Crypto market macro outlook

Markets are taking it in stride for now. Bitcoin (BTC) trades around $67,000–$68,000 over the last 24 hours, Ethereum (ETH) sits near $2,000, and Solana (SOL) hovers in the mid‑$80s, as traders treat the ECB note as a medium‑term structural story rather than an immediate shock. Where the paper does bite, however, is narrative: stablecoins are no longer a side‑quest in crypto, but a core fault line between central banks, banks, and the platforms now wiring tokens into everyday payments.