Market participants point to a mix of drivers behind the move, not just geopolitics. Bitcoin appears to be trading more in line with other risk assets, which have also come under pressure, rather than diverging from them. Higher energy prices could be another factor, potentially increasing the cost of mining and weighing on sentiment. At the same time, expectations that legislative developments in Washington might support crypto demand may be fading, as attention shifts toward the war, possibly dampening the kind of retail-driven momentum that had been anticipated.

The 24/7 nature of crypto markets is also offering a real-time signal of broader positioning. On Sunday, perpetual futures on Hyperliquid showed oil-linked contracts rising more than 2% to about $98 a barrel, while contracts tied to the Nasdaq 100
QQQ
and S&P 500 (SPY) were lower. The geopolitical backdrop remains fluid, with President Donald Trump warning of potential strikes on Iran's power infrastructure if the Strait of Hormuz is not reopened, and Iran signaling it could target US and Israeli assets in response. As tensions evolve, crypto's correlation with risk assets could remain a key theme for investors watching the next move.

source: https://www.tradingview.com/news/gurufocus:77a940cfb094b:0-bitcoin-drops-20-since-february-as-war-pressures-crypto-markets/