Bitcoin fell to $77,614 on Saturday, its lowest level since May 1, as a confluence of geopolitical and macroeconomic pressures weighed on risk assets.
Concerns over US government bonds and escalating tensions with Iran over the Strait of Hormuz - a critical chokepoint for global oil supplies - combined to fuel selling. West Texas Intermediate crude closed the week above $100 a barrel, adding to inflation fears that echo the surge seen in mid-2022, according to Mosaic Asset Company.
Despite the drop, some traders are eyeing a potential 'bear trap.' Analyst Cryptic Trades noted that open interest has risen while funding rates turned negative, suggesting bears are piling on short positions - a pattern that historically precedes a sharp reversal. Others see further downside, with targets around $75,000 to $71,000.
