Bitcoin is plummeting: what are the reasons?
23 March 01:16
The price of Bitcoin and other major cryptocurrencies is plummeting amid the escalation of military conflict and mutual threats between the U.S., Israel, and Iran.
This is reported by [Komersant] citing Bloomberg.
Price Drop and Market Reaction
According to the publication, on Sunday, March 22, the price of Bitcoin fell by 3.3%, dropping to $68,150, its lowest level since early March.
Other popular tokens showed even more significant negative trends—in particular, Ether lost nearly 5%, dropping to $2,050, and Solana, XRP, and Cardano also declined in value.
Overall, since late February, when the U.S. and Israeli attacks on Iran began, the world’s largest cryptocurrency has lost about 20% of its value.
The situation in the markets has once again cast doubt on the ability of digital assets to serve as a reliable store of value during periods of global instability.
Reasons for the negative trend
Peter Tchir, Head of Macro Strategy at Academy Securities, notes that a combination of factors is currently weighing on the industry.
In addition to the general sell-off of risky assets, energy prices are also having a significant impact, making token mining more expensive.
“A significant portion of recent gains, in my opinion, were driven by legislation that is likely becoming increasingly difficult to pass—the District of Columbia is focused on the war, and recently, new legislation has not led to the buying frenzy from newcomers that the crypto community seems to be expecting. It seems that risk is rising again,” the expert said.
An additional source of pressure has been the situation in the Strait of Hormuz and Donald Trump’s statements about his readiness to bomb Iranian power plants.
This has already triggered a rise in oil prices, which has affected the value of perpetual futures and intensified investor pessimism ahead of the opening of traditional trading platforms.
Why cryptocurrency is rapidly losing value
As a reminder, in early February, the Bitcoin price had already shown a sharp decline, reaching a 16-month low. At that time, the price of the leading cryptocurrency fell to $60,000, which experts attributed to general market volatility in early 2026.
According to Reuters forecasts, after Bitcoin fell by 20% since the start of the year, a further gradual decline in the value of the digital asset is expected. Analysts note that the current correction is part of a long-term trend toward market cooling.
At the same time, 2026 is marked by a massive transformation of the cryptocurrency market. In particular, the main trends of the year have been the integration of blockchain into government strategies and the transition of digital assets into the category of basic means for everyday payments.
