Bitcoin Price Falls Below $71K as Iran Ends U.S. Talks and Threatens Hormuz Blockade

Iran said it was ending talks because of repeated ceasefire violations, including Israeli strikes in Lebanon. ” Crypto markets reacted by reducing exposure to risk assets, with Ethereum also falling below $2,000. -Iran Tensions Rise The Strait of Hormuz remains a key route for global energy shipping, making developments in the region closely watched by financial markets.

Renewed concerns over energy prices and liquidity conditions added pressure to Bitcoin and other high-beta assets. S. terms for Iran, including demands linked to control of the Strait of Hormuz and removal of highly enriched uranium.

Iran’s negotiating team reportedly paused active message exchanges through mediators, citing military escalation in the region. Fresh military activity also added to market caution. S.

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had seized about $1 billion in Iranian cryptocurrency. Bitcoin’s decline came during a period when traders were already watching the $71,000 support area. A daily close below that level could bring the $70,000 zone into focus.

Further selling may expose support near $68,000 and the wider $66,000 to $65,000 area. 5 million between May 26 and May 31. The sale was made at an average price of $77,135 per coin and was used to help fund preferred stock dividend payments.

The sale marked Strategy’s first Bitcoin disposal since December 2022. 87 billion at an average price of $75,699 per coin. The sale represented a small share of total holdings but drew attention because Strategy has long been viewed as the largest public corporate Bitcoin holder.

Crypto analyst Michaël van de Poppe has said the fear around Strategy selling Bitcoin may now be behind the market. He argued that once a feared event happens, traders may stop pricing in the same risk. The broader market reaction remained cautious as Bitcoin stayed near short-term support.

Source: Santiment Bitcoin network data also showed lower user activity compared with the 2021 bull market. 12 million in May 2021. New wallets were near 278,000 per day, compared with about 489,000 during the same earlier period.

Is Bitcoin Price Going to Drop Further? Glassnode data showed mixed network conditions. 6 billion, and fee revenue increased 17%.

However, monthly realized cap growth dropped 57% toward near-zero, suggesting limited fresh capital entering the network. Spot market data showed stronger selling pressure. Cumulative volume delta turned negative, while momentum weakened.

7 billion, but the cost of holding long positions increased, showing that bullish traders were paying more to remain exposed. 9 billion. Into The Cryptoverse founder Benjamin Cowen offered a different explanation for Bitcoin’s weakness.

He argued that geopolitical tensions and the Strategy’s Bitcoin sale may be masking a broader cycle pattern already visible in the chart. Source: X Cowen said Bitcoin’s current structure still fits the four-year cycle model. According to his view, the cycle peak near $126,200 in October 2025 came around day 1,162 from the prior bottom, matching earlier cycle timing.

He described the spring rebound in March and April as a countertrend move after January and February weakness. According to him, Bitcoin failed to hold above the 200-day simple moving average, which he views as an important technical level. He said the recent rebound lasted about 16 weeks, placing it within the range often seen before another move lower in past cycle corrections.

S. midterm election years. While some data show positive average June returns, Cowen said those figures are lifted by strong outlier years.

In his cycle model, the Bitcoin price could retest or break the February local low near $60,000 before forming a deeper bottom later in 2026.