Analysis: Bitcoin Falls Back to $71,000, Renewed Tensions in Hormuz Suppress Risk Appetite

Odaily According to reports, after the rebound driven by the ceasefire in the Middle East subsided, Bitcoin hovered around $71,000, Ethereum was around $2,190, and the overall crypto market weakened in sync.

Analysis points out that the breakdown of US-Iran negotiations and escalating tensions around the Strait of Hormuz have returned the market to the macro trading logic of "rising oil prices - rising inflation expectations - declining risk appetite." Institutions believe that Bitcoin encountered significant resistance near $74,000, coupled with crude oil returning above $100, putting pressure on capital's risk appetite. However, most views suggest the current pullback has not yet escalated into panic selling. Data shows that spot Bitcoin ETFs still recorded nearly $1 billion in net inflows last week, and the scale of liquidations was significantly lower than Q1 levels, indicating the market's ability to absorb shocks has improved.

Structurally, there is still strong selling pressure in the $70,000 to $80,000 range, with approximately 13.5 million addresses in a floating loss state, limiting upside potential. Meanwhile, futures open interest has fallen by over 50% from its 2025 high, indicating that previous excessive leverage has been somewhat cleared, and the market structure is becoming healthier. Bitcoin currently behaves more like a macro asset rather than having independent price action, with its trend still highly dependent on inflation and liquidity conditions. Against the backdrop of resurgent US inflation and cautious monetary policy, Bitcoin may maintain a volatile pattern in the short term. (The Block)