Analysis: Bitcoin retreats to $71,000 as renewed tensions in the Hormuz dampen risk appetite.

After the rally driven by the Middle East ceasefire subsided, Bitcoin hovered around $71,000, while Ethereum traded at approximately $2,190, with the overall crypto market weakening in tandem. Analysts point out that the breakdown in US-Iran negotiations and the escalating tensions surrounding the Strait of Hormuz have brought the market back to the macro trading logic of "rising oil prices—increased inflation expectations—declining risk appetite." Institutions believe that Bitcoin encountered significant resistance around $74,000, coupled with crude oil returning above $100, putting pressure on risk appetite. However, most opinions suggest that the current pullback has not yet evolved into panic selling. Data shows that the spot Bitcoin ETF still recorded a net inflow of nearly $1 billion last week, and the scale of forced liquidations was significantly lower than in the first quarter, indicating that the market's ability to absorb shocks has improved. Structurally, strong selling pressure remains in the $70,000 to $80,000 range, with approximately 13.5 million addresses in a floating loss state, limiting upside potential. Meanwhile, open interest in futures contracts has decreased by more than 50% from its 2025 peak, indicating that excessive leverage has been largely cleared and the market structure is becoming healthier. Bitcoin is currently behaving more like a macro asset than an independent market, and its price movements remain highly dependent on inflation and liquidity conditions. Given the resurgence of inflation in the US and the continued cautious monetary policy, Bitcoin is likely to maintain a volatile pattern in the short term. (The Block)