Bitcoin (BTC) and the broader crypto market continue to trade at lower levels than last week, as geopolitical tensions in the Middle East persist.

According to The Block's bitcoin price page, the world's largest cryptocurrency was up 0.34% in the past 24 hours to trade at $66,966 as of 11:15 p.m. Sunday, ET. Bitcoin briefly crashed on Saturday, dropping to $65,000.

Though its price has stabilized, it remains below last week's levels of around $71,000. It is down 47% compared to its all-time high of $126,080 recorded in October 2025.

"What we saw this week was a classic risk-off unwind," said Rachael Lucas, crypto analyst at BTC Markets. "Bitcoin touched $72k mid-week on hopes of a diplomatic breakthrough in the Middle East, then gave it all back as those hopes faded and oil supply concerns resurfaced."

The analyst added that the situation surrounding the Strait of Hormuz is worsening inflation fears, which keeps the Federal Reserve from cutting interest rates. This consequently weighs down on crypto prices, Lucas explained.

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The U.S.-Iran conflict continues with Iran launching strikes on nearby Gulf states such as Kuwait and Saudi Arabia, while peace talks remain in a deadlock. The Block's crypto Fear & Greed Index points to 9, which means that the market is still in "extreme fear."

"In short, oil and gas prices will remain elevated and drag on economic growth in the near future," said Jeff Mei, COO at BTSE. "Because of this, we believe that crypto prices have more room to fall, with bitcoin potentially falling to the $60k support level."

Andri Fauzan Adziima, Research Lead at Bitrue, also told The Block that the market remains choppy and headline-driven, where additional shocks can lead bitcoin to $60,000. Any de-escalation in the U.S.-Iran conflict and following relief in oil prices may lead to a rally above $70,000, Adziima added.

Moving in opposite directions

Meanwhile, BTC Markets' Lucas noted that retail and institutional investors are currently moving in opposite directions, which she described as a historically interesting setup.

"Retail sentiment is fearful … Everyday investors are hedging or sitting on the sidelines," Lucas said. "Institutional sentiment is a different picture entirely."

Lucas pointed out that spot bitcoin exchange-traded funds in the U.S. reported over $1.13 billion in monthly inflows, which breaks four straight months of negative total monthly flows. The analyst also noted Strategy's continued buying and Morgan Stanley's upcoming low-fee bitcoin ETF launch.

"When retail fear and institutional accumulation diverge this sharply, history suggests the institutions tend to be right," Lucas said. "That doesn't mean the price goes up tomorrow, but it does mean the structural bid is there, and that matters for where we go in Q2."

Beyond geopolitical factors, Zeus Research Analyst Dominick John noted that investors are focused on this week's U.S. macro data. Initial jobless claims and March non-farm payrolls could spark a risk-on rally if employment figures underperform again, John told The Block.