Analysis: Bitcoin Retreats to $72,300 Amid Dual Impact of Geopolitical Conflict and Inflation Data

Odaily According to news, influenced by escalating Middle East tensions and higher-than-expected US inflation data, Bitcoin's price rapidly retreated to $72,300, marking a roughly 2% decline over 24 hours. Ethereum (ETH), Solana (SOL), and XRP saw losses nearing 3%, with risk assets broadly under pressure. On the news front, US President Trump issued stronger rhetoric towards Iran, labeling it the "number one state sponsor of terrorism" and hinting at potential further escalation. Concurrently, events such as the attack on Iran's South Pars gas field, reports of Israel killing an Iranian intelligence minister, and the US using heavy bombs to strike missile facilities near the Strait of Hormuz intensified market anxiety, pushing WTI crude oil prices from around $92 to nearly $96.

On the macroeconomic data front, US February PPI rose 0.7% month-on-month, exceeding the expected 0.3%; core PPI increased by 0.5%, also surpassing expectations. Notably, this inflation data does not yet account for the recent sharp rise in oil prices, further heightening market concerns about persistent inflation and weakening expectations for interest rate cuts.

Against this backdrop, the crypto market weakened in tandem with US stock futures, with the three major index futures turning from gains to losses of about 0.4%. Market focus has shifted to the upcoming Federal Reserve interest rate decision and Chair Powell's remarks on growth risks and inflation pressures. Meanwhile, Trump has once again publicly called for interest rate cuts, adding a political variable to this meeting. (CoinDesk)