Bitcoin wobbles around $70,000 as macro headwinds weigh on crypto

Bitcoin (BTC) and other major cryptocurrencies fell sharply on Thursday, tracking a broader risk-off move across global markets, as investors reacted to hotter-than-expected U.S. inflation data, hawkish signals from the Federal Reserve, and rising geopolitical tensions.

Bitcoin briefly dipped to $69,969 on Thursday afternoon in Asia, before recovering back above the $70,000 level, according to The Block’s BTC price page. The world’s largest cryptocurrency is down 5.5% over the past 24 hours and has retreated more than 43% from its all-time high near $124,700 in October 2025.

Ethereum dropped 6.9% to $2,159, while the GMCI 30 index, which tracks the top 30 cryptocurrencies by market capitalization, fell about 5.4%.

The crypto selloff coincided with a sharp decline in Asia-Pacific equities, which tracked overnight losses on Wall Street. The Dow Jones Industrial Average dropped 1.6% at closing on Wednesday, while the Nasdaq Composite lost 1.5%.

Japan’s Nikkei 225 led regional losses, falling 3.4%. South Korea’s Kospi slid 2.7%, while Hong Kong’s Hang Seng index and China’s CSI 300 also posted losses.

Macro pressures intensified after the Federal Reserve held its benchmark interest rate steady at 3.5% to 3.75%. Data released this week also showed the U.S. producer price index rose 0.7% in February, more than double economists’ expectations of 0.3%, CNBC reported.

The Iran conflict also continued to fuel energy concerns, pushing oil prices higher. Brent crude rose about 7.4% to around $115 per barrel, while WTI crude gained roughly 1.2% to $97.5.

Macro headwinds

Analysts said the crypto downturn appears to be driven primarily by macro factors rather than crypto-specific developments.

“The [crypto] selloff appears to be macro-driven rather than crypto-specific,” Rick Maeda, research associate at Presto Research, told The Block.

“Asian equities are down sharply and the U.S. dollar has strengthened, while gold is also falling,” said Maeda, adding that such a combination points to a liquidity-driven selloff rather than a rotation into traditional safe havens. “A stronger dollar and rising yields are reducing the appeal of both gold and crypto simultaneously.”

Nick Ruck, director of LVRG Research, similarly attributed the declines to a combination of inflation data and Powell’s hawkish tone, which “dampened expectations for near-term interest rate cuts” and triggered a broader risk-off sentiment.

“Traders are currently monitoring upcoming macroeconomic indicators like CPI releases, further Fed commentary, and geopolitical developments impacting energy prices,” Ruck said, adding that the $70,000 level remains a key technical threshold for bitcoin.

Meanwhile, Dominick John, analyst at Zeus Research, said the confluence of macro headwinds accelerated market downside through forced liquidations and leverage unwinds.

“Crypto cracked as the FOMC meeting met head-on with oil spikes, stoking inflation fears and reinforcing the Fed’s higher-for-longer stance,” John said. “Liquidity tightened, yields ticked up, and leverage unwinds accelerated the move turning a pullback into a flush.”

Looking ahead, analysts said markets will remain highly sensitive to macro developments, particularly oil prices, labor market data, and any signs of easing geopolitical tensions.