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Bitcoin slipped below $67,000 on Tuesday as risk appetite weakened across global markets, pushing crypto prices and crypto-linked stocks lower. The move came as investors reacted to rising Middle East tensions, stronger oil prices, a firmer US dollar, and higher Treasury yields.
At the same time, market participants continued to debate whether Bitcoin is nearing a cycle bottom or facing more short-term downside from tight liquidity conditions.
Bitcoin fell more than 1.5% and traded below the $68,000 level after briefly nearing $70,000 on Monday. The decline reflected a broader risk-off shift, as Ethereum and other major altcoins also dropped.
Crypto-related equities also tracked Bitcoin’s decline. Strategy, Coinbase, and Galaxy Digital each fell in pre-market trading, while crypto miners such as IREN and Cipher Digital also posted losses. These stocks usually move with Bitcoin because their revenues, balance sheets, or trading volumes depend on crypto prices and investor activity.
On the other hand, oil prices remained above $74 a barrel, the US dollar index rose above 99, and the US 10-year treasury yield rose towards 4.1%, all of which indicate a defensive rotation, thereby increasing the cost of holding risk assets, prompting traders to unwind their positions in high volatility assets, including Bitcoin and crypto equities.
Despite the selloff, some industry executives argued that Bitcoin may be forming a bottom within its long-running four-year cycle. VanEck CEO Jan van Eck said Bitcoin’s halving cycle is the main driver of price behavior, rather than short-term headlines or changes in market narratives.
He said Bitcoin usually rises for 3 years and then falls sharply in the fourth year. In his view, 2026 fits that pattern, which explains the current weakness. He also pointed to Bitcoin’s fixed supply and halving structure as the core forces behind the cycle. This framework suggests the present decline may reflect a cyclical phase, not a breakdown in Bitcoin’s long-term thesis.
Van Eck also said geopolitical uncertainty may increase interest in crypto payment rails in some regions. His comments did not remove near-term risk, but they supported the argument that Bitcoin still has a constructive longer-term setup once this cycle phase passes.
Sygnum Bank CIO Fabian Dori offered a similar long-term view but stressed that short-term conditions are fragile. He described the current downturn as a liquidity squeeze rather than a structural crisis in crypto fundamentals. In his view, weak sentiment and thin market depth have amplified price swings.
Dori said crypto markets have become more vulnerable because confidence has dropped, and traders react quickly to negative headlines. He also linked part of the pressure to tighter liquidity conditions in traditional markets, which usually hit crypto harder than other asset classes.
Even so, he said the current environment differs from 2022. He pointed to better institutional adoption, stronger counterparty risk controls, and a more developed market structure. This distinction matters because it suggests Bitcoin may still face volatility and further downside, while the broader long-term bull case stays intact if liquidity conditions improve.
Also Read: Is Bitcoin a Forever Hold? New Bullish Indicator Says ‘Yes’
