Bitcoin remains stagnant, hovering around $66,785 as geopolitical tensions rise, particularly following U.S. President Donald Trump’s aggressive stance on Iran. Despite a slight uptick in the past 24 hours, Bitcoin has struggled to breach the $67,000 mark, influenced by soaring Brent crude prices, which have reached $120 per barrel due to disruptions in the Strait of Hormuz. This surge in oil prices is driving inflation expectations higher, complicating the case for interest rate cuts that have supported Bitcoin’s recent performance.

The current market dynamics reveal a divergence in crypto demand. While institutional inflows into Bitcoin ETFs remain robust, with $22 million in net inflows this week, data indicates a shift in behavior among large holders, who have distributed nearly 188,000 BTC since last year’s peak. This trend, combined with a significant portion of Bitcoin trading at a loss, suggests a cautious sentiment among investors as they navigate potential volatility over the Easter weekend.

Market professionals should prepare for increased volatility in Bitcoin as liquidity thins and macroeconomic developments unfold. The interplay between energy prices and inflation could significantly impact crypto sentiment and trading strategies in the near term.

Source: coindesk.com