Bitcoin Could Drop Below $60K as UAE Shipping Attack Sparks New Oil Fears

Highlights:

• Bitcoin falls back into a multi-week consolidation between $70,410 and $62,618
• Renewed fears of an oil price spike could trigger a Bitcoin selloff
• A drop through $62,618 could see Bitcoin drop below $60k

Bitcoin (BTC) is showing signs of weakness after an attempted rebound earlier in the week. When writing, Bitcoin was trading at $69,705, down by 1% on the day. Intraday trading volumes are also relatively unchanged, standing at $50,04 billion. Unchanged trading volumes when the price is showing signs of weakness could indicate low demand and new investors taking caution before buying Bitcoin. Such could be a precursor to another round of short-term selloffs. A key trigger to this could be the evolving dynamics in the Middle East. 

New Hit On Container Ship In UAE Could Trigger Selloff

Bitcoin’s gains, and those of other financial assets, earlier in the week were driven by Trump’s assessment of the Iran war. President Trump said that Iran’s leadership and military were pretty much decimated and that the war would end soon. His speech triggered a sharp correction in oil prices and a rally across all risk-on assets.

However, new information emerged on the day that an unknown projectile has hit a container ship off the coast of the UAE. News of the strike has triggered fears that shipping through the Strait of Hormuz may not be possible as of yet.

UKMTO WARNING 018-26

Click here to view the full Warning⤵️https://t.co/R29PKZ34iH#MaritimeSecurity #MarSec pic.twitter.com/8UYiab3Ygj

— UKMTO Operations Centre (@UK_MTO) March 11, 2026

If this triggers fear in the oil markets and oil rallies back above $100, risk-on assets could crash again. Such includes Bitcoin, which now trades largely in line with US indices. It explains why, after another attempt at a rally within under 10 days, Bitcoin is showing weakness again.

However, despite the evolving geopolitical situation, Bitcoin may not drop significantly. That’s because institutional capital remains strongly interested in Bitcoin. Earlier this week, Bitcoin recorded $167 million in net inflows. As institutional demand grows, Bitcoin could either hold in a stable range or rally due to its low supply.

Finally some green in the BTC ETFs! $167M inflows = bullish vibes returning 😎

— The TAX Intern (@the_tax_intern) March 10, 2026

Bitcoin’s Advantages Over Gold Start to Emerge

Bitcoin could also emerge as a winner from the transport disruptions happening in the Middle East. Gold has always been the standard safe asset in times of uncertainty. However, with disrupted shipping and air transport in the Middle East, investors may increasingly find it hard to move their Gold to safer locations. This is something that Bitcoin investors do not have to deal with. That’s because Bitcoin is code and can be moved from one location to another without much trouble.

Gold has a flaw nobody talks about.

In Dubai right now, gold is being sold at a discount.

Not because it lost value.
Because war makes it impossible to move.

Bitcoin has no borders.
No checkpoints. No confiscation. No discount.

That's not a feature. That's the whole point. pic.twitter.com/7pMoYWe7TW

— Crypto Tice (@CryptoTice_) March 7, 2026

Such emerging realities could help drive the narrative that Bitcoin is digital gold, hard going into the future. It could trigger capital inflows into Bitcoin, support the price under stress, and potentially spark a rally to new highs once macros stabilize. 

Bitcoin Supply Continues – A Plus Long Term

There is also the fact that the Bitcoin supply has shrunk considerably in recent years. Data shows that the amount of Bitcoin held by exchanges has dropped since 2019. At the same time, the amount of Bitcoin that can be mined into existence continues to drop. With institutions now part of the demand, simple economics dictate that Bitcoin will continue to gain, irrespective of short-term geopolitical volatility. 

Technical Analysis – Bitcoin Back Into Multi-Week Range

After a failed breakout above $70,410, Bitcoin is back in the multi-week range between $70,410 and $62,618. If bulls take control and push the price through the $70,410 resistance, a rally to $96,962 could materialize.

However, if renewed fears of an oil price spike take root, the key level to watch would be $62,618. A correction through this price could see Bitcoin drop to levels below $60k in the short term. The more likely scenario is a continuation of consolidation between the $70,410 resistance and the $62,618 support. This could continue until the financial markets respond decisively to the evolving situation in the Middle East.