Bitcoin Prices Plummet Amid Rising Middle Eastern Tensions

Bitcoin's price has been on a downward trend over the past week, with a significant drop on February 27. The asset plummeted from $68,000 to a floor of $65,500 in under three hours, erasing weekly gains and leaving bitcoin down 3.5% for the week.

The decline was triggered by rising Middle Eastern tensions, including Iran's uranium standoff with the US. Analysts warn that a potential Strait of Hormuz blockade could disrupt global energy flows, hitting markets from Asia to Europe.

A Glassnode report highlights structural weakness in the market, citing a 'structurally thin liquidity environment' as a contributing factor to bitcoin's inability to break the $70,000 level.