Bitcoin Drops to Lowest Level Since the Start of the Iran War

SadaNews - The Bitcoin currency has dropped to its lowest level since the beginning of the conflict with Iran, as renewed clashes in the Middle East have affected market sentiment more broadly.

The cryptocurrency fell by more than 5% to below $62,000 in early trading in Singapore on Thursday, marking its lowest level since February 6. The losses extended into a painful week that saw the currency drop nearly 16% in value, a decline that began after the "Strategic" company, affiliated with Michael Saylor, sold about $2.5 million of its massive Bitcoin holdings.

In recent years, "Strategic" has become one of the largest buyers of Bitcoin, making its shares act as a proxy for the currency through a model called the digital asset treasury, where it buys and holds cryptocurrencies.

The market viewed it as a negative signal when Saylor decided to sell some of the billions of dollars owned by the company, even after the executive suggested last month that the company might start selling.

"Strategic" Shatters Market Confidence

Josh Doe, head of investments at Animoca Brands, said: "The price of Bitcoin has fallen this week after 'Strategic' broke its pledge 'not to sell', which shattered market confidence." He added: "With oil prices rising amid a tight macroeconomic environment, we see a real risk that Bitcoin could drop below the $62,000 barrier that has held since the Iran War."

The selling confirmed Bitcoin's divergence from tech stocks, which reached record highs while the currency declined. Bitcoin has lost more than half of its value since it reached an all-time high above $126,000 last October.

The currency remains vulnerable to macroeconomic risks, having dropped further following nighttime strikes that threatened U.S.-Iran talks on a temporary peace agreement. Asian stocks and U.S. stock futures declined alongside Bitcoin on Thursday morning in Singapore.

Smaller currencies are also under pressure. The "Ether" currency, the second-largest cryptocurrency, has fallen to its lowest level since April 2025.

Approximately $1.5 billion of bullish bets were wiped out in the past 24 hours, nearly half of which occurred in the last four hours, with Bitcoin leading the way, according to CoinGlass.

Investors withdrew nearly $4 billion from U.S.-listed Bitcoin exchange-traded funds over the past 12 sessions, a record number of consecutive outflows, according to data compiled by Bloomberg.