Bitcoin Pulls Back as U.S-Iran Failed Talks Trigger Selloffs
Bitcoin pulled back by 3.4% to $71,158 over the past 24h, underperforming the broader market, which fell 2.78%, amid a sharp escalation in Middle East geopolitical tensions.
BTC sold off after U.S.-Iran ceasefire talks in Islamabad failed on April 12, followed by President Trump announcing an immediate U.S. naval blockade of the Strait of Hormuz.
This heightened geopolitical uncertainty caused a broad risk-off move, pressuring crypto prices. Crypto analysts said the market is treating Bitcoin as a risk-sensitive asset in the short term, reacting swiftly to macro shocks.
Meanwhile, data shows 13.5 million addresses are holding coins at a loss. This follows a decline from the October 2025 peak of $126,272, with the ongoing U.S.-Iran conflict cited as a key pressure point.
This is bearish for Bitcoin in the near term, as it indicates a large pool of potential sellers who may look to exit if prices recover to their break-even point, creating overhead resistance
Geopolitical risk shock from failed U.S.-Iran talks and a U.S. naval blockade announcement, triggering a flight from risk assets.
A cascade of leveraged long liquidations exceeding $73 million in 24h and deeply negative funding rates, which amplified the downward move.
The sharp drop triggered significant liquidations, with over $73 million in BTC positions liquidated in 24h—a 63% increase from the prior period.
Concurrently, Bitcoin funding rates plunged into deeply negative territory, indicating extreme bearish sentiment among leveraged traders.
Forced selling from over-leveraged longs exacerbated the decline, while extreme negative funding can set up a contrarian squeeze if sentiment reverses.
The immediate trigger is geopolitical, with the key concrete event being the evolving situation in the Strait of Hormuz. Technically, holding the $70,900 swing low is critical for bulls to prevent a deeper correction.
If that level holds, a rebound toward the $73,000 resistance is plausible. A break below $70,900 opens the door to a test of the next major support near $69,000–$68,000.
The trend is bearish in the very short term but remains within a larger consolidation range. Price action is flow-driven, with on-chain activity still subdued. Bitcoin Price Climbs on Standard Chartered $500k Prediction
