Bitcoin Falls to $70,000, Day Traders Take Profit amid Escalating Middle East Tensions

BlockBeats News, March 6th. The price of Bitcoin rebounded to $74,000 in the middle of the week and then fell back, dropping about 3.7% in the past 24 hours, currently hovering above $70,000; the CoinDesk 20 Index fell by 3.5% during the same period. Analysts believe that some short-term traders chose to take profits after the rebound, while the escalation of the Middle East situation caused some funds to shift to lower-risk assets.

The sentiment in the derivatives market is bearish, with the funding rate remaining negative, indicating that traders are paying a fee to maintain their short positions. However, spot demand still exists, with the recent inflow of stablecoins into exchanges reaching a new high since 2026, and flows into Bitcoin spot ETF funds have also turned net positive again.

Market participants pointed out that when spot accumulation continues and the funding rate is negative, it has historically often triggered a short squeeze rally, but the outcome is uncertain. At the same time, the U.S. and Israel's strike against Iran and the retaliatory actions have disrupted oil transportation in the Strait of Hormuz, with Brent crude oil rising by over 22% in a week, intensifying inflation concerns over the surge in energy prices.

Furthermore, the market is awaiting the upcoming release of U.S. non-farm payroll data, which may further impact market expectations for the Federal Reserve's interest rate path.