Bitcoin Close To $70,000 As US Airstrikes On Iran Continue: What Is Going On?

Bitcoin (CRYPTO: BTC) is approaching the $70,000 mark, even as geopolitical tensions tied to U.S. airstrikes on Iran drive the price of oil higher.

Short-Term Holders Show Resilience

Despite a recent dip toward the $63,000–$64,000 range, Bitcoin’s short-term holders (STHs) are not displaying signs of panic selling, CryptoQuant data shows.

Following the Feb. 5–Feb.6 capitulation event, when large volumes of BTC purchased near $89,000 were sent to exchanges at a loss within 24 hours, loss-driven inflows have steadily declined.

Sell pressure from recent buyers appears to be fading, suggesting that initial panic has transitioned into patience or seller exhaustion.

Importantly, there has been no meaningful spike in exchange inflows from short-term holders during the latest geopolitical escalation.

This cohort, typically the most reactive during volatility, has not rushed to exit positions.

Muted exchange inflows from STHs often indicates potential stabilization.

If loss-driven transfers remain subdued, it would strengthen a bottoming thesis.

However, a sudden surge in exchange deposits could signal that capitulation is not yet complete.

Majority Of BTC Investors Underwater

A significant portion of Bitcoin investors from the past two years are currently holding unrealized losses, CryptoQuant highlighted.

Historically, major tops tend to occur when most participants sit on large profits, while strong rallies often begin when sentiment reaches maximum discomfort.

If Bitcoin were to drop below $60,000, nearly all short- to mid-term holders would be underwater.

Such a scenario could create a more aggressive accumulation zone, provided the broader market structure remains intact.

For now, the absence of panic selling suggests underlying resilience, even as macro and geopolitical risks continue to test market confidence.

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