Analyst: If geopolitical conflicts escalate further, Bitcoin may dip to the $60,000 support level.

ChainCatcher reports that, according to market sources, due to the ongoing US-Iran conflict, Bitcoin’s price has fallen from about $71,000 last week to around $67,000, with a brief drop to $65,000 on Saturday. BTC Markets crypto analyst Rachael Lucas states that Bitcoin briefly aimed to reach $72,000 on Monday due to diplomatic breakthroughs in the Middle East, but as hopes faded and concerns over oil supply reemerged, the price retraced its gains.

She points out that the escalation of tensions in the Strait of Hormuz has heightened inflation fears, making it difficult for the Federal Reserve to cut interest rates, thereby exerting pressure on crypto prices. Jeff Mei, CTO of BTSE, says that oil and gas prices are expected to remain high in the short term, which will hinder economic growth, leaving room for further declines in crypto prices, with Bitcoin potentially dropping to a support level of $60,000.

Andri Fauzan Adziima, head of research at Bitrue, believes that the market will continue to be volatile and driven by news. If the US-Iran conflict escalates, Bitcoin could dip below $60,000; if tensions ease and oil prices fall, a rebound above $70,000 is possible.

BTC Markets analyst Lucas also notes that currently retail investors are in a panic, mostly holding a wait-and-see or hedging stance, while institutional investors are moving in the opposite direction. The US spot Bitcoin ETF saw inflows of over $1.13 billion this month, ending four consecutive months of net outflows; Strategy continues to increase holdings, and Morgan Stanley is about to launch a low-fee Bitcoin ETF.

She states that when retail panic and institutional accumulation diverge significantly, historical experience shows that institutional judgment tends to be more accurate.