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Bitcoin fell roughly 2.5% on Sunday after President Trump ordered the U.S. Navy to begin blockading the Strait of Hormuz, erasing gains that had briefly pushed the asset above $73,000. BTC was trading near $70,826 as of publication time Monday morning, consolidating inside a zone that analysts describe as structurally contested.
Trading above $73,000 for most of Saturday, Bitcoin quickly pulled back to the $71,500 area following comments from Vice President JD Vance before sliding further to around $70,900 after Trump announced the blockade.
The move adds a geopolitical dimension to a market that was already navigating significant overhead resistance. According to analysis from institutional research house Blockhead Research Network (BRN), roughly 13.5 million addresses remain underwater at current prices, and every incursion into the $70,000–$80,000 range has met consistent profit-taking, running at more than $20 million per hour during last week's push higher.
Softer core inflation and thin Bitcoin supply between $72,000 and $80,000 have been cited as conditions that could enable rapid upside if broader risk sentiment holds — but the Hormuz development complicates that outlook considerably. The strait handles a significant share of global oil flows, and any sustained disruption would feed energy-driven inflation at a time when the Federal Reserve is already constrained.
Oil prices have remained above $100 since early March, and the Federal Reserve has raised its 2026 inflation forecast to 2.7% in response, with expectations for rate cuts fading. This week's producer price index reading on Tuesday and a slate of scheduled Fed speaker events will give markets a clearer read on whether policy is likely to tighten further.
ETF flows had offered a more constructive signal heading into the week. BRN data showed $786 million in net Bitcoin ETF inflows last week alongside $187 million for Ethereum, marking a shift after weeks of inconsistent institutional demand.
BRN's analysis identified key cost-basis clusters — including the short-term holder cost basis at $81,300 and the Active Investors Mean at $85,000 — as the levels that would need to be reclaimed to shift the market's structural posture. For now, the $70,000 level remains the immediate battleground, with thin supply above it offering the potential for quick moves in either direction once a catalyst emerges.
