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 $240 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.
