Bitcoin (BTC) fell 3% to trade below $71,000 by Sunday’s weekly close after negotiations to end the U.S.-Iran war broke down.

Key points:

• Bitcoin lost its gains after negotiations between the US and Iran broke down.

• The Strait of Hormuz is becoming a flashpoint again after US President Donald Trump demanded it be reopened.

• BTC price drop punishes tardy long positions.

BTC price falls due to fears of a US-Iran war

Data from TradingView showed that the price of BTC fell below $71,000 following news of the sudden breakdown of negotiations between the US and Iran in Islamabad, Pakistan.

The lack of agreement on nuclear weapons resulted in both delegations leaving the talks incomplete. Later, U.S. President Donald Trump said the United States would block the Strait of Hormuz and “ban” ships paying Iran for secure passage.

“No one who pays an illegal toll will be able to safely sail on the high seas,” he wrote in a post on the website Social truth.

AND next post repeated demands that Iran make Hormuz, a major oil transit route, fully operational.

Before futures markets opened, reactions to recent events highlighted risks to the broader economy.

“If the way forward is further war, escalation and a prolonged closure of the Strait of Hormuz, the Iran war has just entered a new era,” The Kobeissi Letter wrote. latest analysis on X

“US CPI inflation just increased from 2.4% to 3.3%, and according to our models, further escalation of the war in Iran will lead to inflation of over 4.0%.

Kobeissi referred to the US inflation index (CPI), an indicator that is particularly sensitive to oil prices. At the beginning of the week, the March CPI reading was slightly below expectations, despite the largest jump in the oil price component in 60 years.

“According to Iranian media, there are no current plans for additional talks,” Kobeissi added.

“So will Trump decide to push harder for diplomacy or step up military action? We’ll find out today.”

Bitcoin liquidations are rising as longs suffer

As the only asset class that is traded 24 hours a day, Bitcoin and cryptocurrencies have been the only ones to respond to the chaos in real time.

Related: Bitcoin analysis predicts that the BTC price at 55,000. dollars will reach the “iron bottom” by December 2026

Data from CoinGlass showed that BTC/USD can cope with long liquidations, with total liquidations in the last 24 hours reaching $350 million.

“Volatility remains high and it is clear that there will be no path forward for risk assets to perform well if this is the consensus,” trader Michaël Van de Poppe wrote in his report X’s answer.

Van de Poppe suggested that economic weakness from a recurring war could force the Federal Reserve to inject liquidity despite rising inflation.

“On a broader scale, I believe we have a weak enough economy right now and the Fed has no choice but to resume printing to positively impact the economy,” he argued.

Previously, Cointelegraph reported on the increasing likelihood of the United States entering a recession in 2026.

Next week will bring more inflation guidance from the March print of the Producer Price Index (PPI), with many senior Fed officials commenting on the economy.