Bitcoin continued its decline on March 28, trading around $66,200 as the market reacted to growing doubts about detente between the US and Iran. President Donald Trump’s 10-day pause on energy attacks did not reassure investors, especially after reports that Israel continued attacks during the period.
That reaction is being seen across the market.
Israel attacked Iran’s infrastructure, including two of its largest steel factories, a power plant, and a civilian nuclear facility. Israel claims it acted in coordination with the US
The attack contradicts the president’s diplomatic deadline extension.
Iran will pay a heavy price for Israel’s crimes
— Sayed Abbas Araghchi (@araghchi) March 27, 2026
The S&P 500 index has fallen steadily throughout this week, hitting its lowest level in six months.
This widespread decline signals a clear shift towards risk-off sentiment as investors exit equities amid heightened geopolitical and macro uncertainty.
Cryptocurrencies are following the same pattern.
The S&P 500 ended March at a six-month low. Source: Google Finance
Bitcoin price trends continue to show weakness, and the intraday rebound has not been sustained. This reflects a deeper problem.
Markets view President Trump’s suspension of action not as a step toward peace, but as a delay in de-escalation. Reports that the strike is continuing support this view.
At the same time, rising US bond yields are tightening financial conditions. Higher yields reduce liquidity and make capital more expensive, which typically puts pressure on risky assets like stocks and cryptocurrencies.
As a result, Bitcoin is trading more like a tech stock than a hedge.
The price of Bitcoin continues to fall. Source: CoinGecko
In previous cycles, geopolitical tensions have sometimes helped Bitcoin. That’s not the case now. Rather, the market is being driven by inflation risks, soaring oil prices, and waning expectations for interest rate cuts.
For now, the message is clear.
Until we see solid progress towards de-escalation and yields stabilize, crypto markets are likely to remain under pressure, with downside risks dominating in the short term.
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