Bitcoin Drops to $71,000 Amid Escalating Tensions in the Hormuz Strait

ChainCatcher reports that after the rebound fueled by the Middle East ceasefire faded, Bitcoin has stagnated near $71,000, while Ethereum trades around $2,190, with the broader crypto market also weakening. Analysis suggests that the breakdown in U.S.-Iran negotiations and escalating tensions around the Strait of Hormuz have caused markets to revert to the macro trading narrative of “rising oil prices → higher inflation expectations → lower risk appetite.” Institutions note that Bitcoin faces clear resistance near $74,000, compounded by crude oil rebounding above $100, putting pressure on risk appetite. However, most views hold that the current pullback has not yet evolved into panic selling. Data shows that spot Bitcoin ETFs still recorded nearly $1 billion in net inflows last week, and liquidation volumes remain significantly lower than first-quarter levels, indicating improved market resilience to shocks. Structurally, strong selling pressure persists between $70,000 and $80,000, with approximately 13.5 million addresses currently underwater, capping upside potential. Meanwhile, open interest in futures contracts has declined by over 50% from its 2025 peak, suggesting that excessive leverage has been partially unwound and market structure is becoming healthier. Bitcoin now behaves more like a macro asset than an independent asset class, with its price still heavily dependent on inflation and liquidity conditions. Amid resurging U.S. inflation and a cautious monetary policy stance, Bitcoin is likely to remain range-bound in the near term.