Bitcoin Slips below $68K as Dollar Posts Steepest Weekly Gain in a Year

Bitcoin fell to around $68,000 as the dollar surged to its best week since 2022 amid Iran conflict fears. Glassnode data shows 43% of Bitcoin supply now sits at a loss, with Solana down 4% and Ether falling 4.4%.

Bitcoin slipped below around $68,000 heading into the weekend, extending recent volatility as the U.S. dollar posted its steepest weekly gain in a year. The largest cryptocurrency traded at approximately $68,000 today (March 7), down about 3.4% from a mid-week peak above $74,000, continuing a pattern of weekend selling pressure within narrow ranges.

The dollar's surge its strongest weekly performance since 2022 has been the primary macro headwind. The greenback climbed nearly 2.4% as escalating U.S.-Iran conflict drove a "flight to safety" away from risk assets. With the Strait of Hormuz effectively closed following "Operation Epic Fury," oil prices crossed $80 per barrel, adding to inflation concerns that push rate-cut expectations further out and tighten liquidity for speculative assets.

Most major cryptocurrencies gave back Friday's gains. Solana dropped 4%, extending its status as the worst-performing major on a weekly basis at -4.2%. Ether fell 4.4% to barely cling to the $2,000 level, which traders treat as psychological bedrock. XRP held relatively flat but still lost 1.3%.

On-chain data reveals mounting stress. Glassnode reports that approximately 43% of Bitcoin's circulating supply is now sitting at a loss, creating overhead selling pressure during any relief rallies. This metric, combined with a Crypto Fear & Greed Index hovering near 23 deep in "fear" territory reflects broad capitulation.

Despite the downturn, some analysts note structural support. Spot Bitcoin ETFs absorbed selling during February's drop to $62,920, with BlackRock's IBIT alone holding approximately $67 billion. Exchange balances have not spiked, suggesting institutional holders are not panic-selling. The critical level to watch is $67,000-$68,000 support; a break below $61,000 could accelerate declines toward $30,000, while a sustained move above $72,000 would invalidate the bear flag pattern dating from October's all-time high.