Bitcoin drops below $68,000 as escalating US-Iran conflict drives a broad crypto sell-off, with the Fear and Greed Index hitting 14.
The crypto market is deep in the red as rising US-Iran military tensions trigger a wave of risk-off selling across digital assets.
Bitcoin fell 3.6% on March 7 to trade around $68,000, extending losses from earlier in the week. Ethereum dropped 4.6%, Solana slid 4.3%, and XRP also posted sharp declines. The total crypto market cap fell from $2.39 trillion to $2.32 trillion in 24 hours, a nearly 3% decline.
The sell-off accelerated after US officials announced plans to cut Iran's oil revenues and limit funding for the Islamic Revolutionary Guard Corps. Iranian President Masoud Pezeshkian rejected demands for an unconditional surrender, pushing tensions higher. The Crypto Fear and Greed Index dropped to 14, signaling extreme fear among investors.
Geopolitical uncertainty has historically pressured risk assets, and crypto is no exception. Bitcoin is now trading roughly 47% below its October 2025 all-time high of $126,000. Spot Bitcoin ETF assets under management have also declined, falling from a peak of $170 billion in October 2025 to around $84 billion.
The conflict raises concerns about prolonged market instability. While previous geopolitical events like the Russia-Ukraine war initially hit crypto prices, recovery followed once markets digested the news. The question is whether this situation will follow the same pattern or evolve into a more sustained risk-off environment.
Markets will closely monitor any de-escalation signals between the US and Iran in the coming days. Bitcoin's $65,000 support level is a key threshold. A break below could trigger further liquidations. On the upside, any diplomatic progress or ceasefire talks could spark a relief rally. The upcoming US nonfarm payrolls data, which was a trending social topic this week, may also add volatility.
This is a developing situation. Crypto markets remain sensitive to geopolitical headlines, and conditions may shift rapidly as diplomatic or military developments unfold.
Wall Street giant Citigroup projects Bitcoin could reach $143,000 within 12 months, citing ETF demand and regulatory tailwinds as key catalysts.
The largest US bank is assessing spot and derivatives trading services as regulatory clarity enables traditional finance to deepen crypto involvement.
All 12 U.S. spot Bitcoin ETFs saw positive inflows on March 2, totaling $458M as BTC rebounds from February lows.
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