Analysis: Geopolitical conflicts and inflation data have caused a double impact, leading Bitcoin to fall back to $72,300

According to CoinDesk, affected by the escalation of the situation in the Middle East and U.S. inflation data exceeding expectations, the price of Bitcoin quickly fell back to $72,300, with a 24-hour decline of about 2%. Ethereum (ETH), Solana (SOL), and XRP fell nearly 3%, putting overall pressure on risk assets.

On the news front, U.S. President Trump sent a stronger signal regarding Iran, labeling it as the "number one supporter of terrorism" and hinting that the situation may escalate further. Meanwhile, incidents such as the attack on Iran's South Pars gas field, Israel reportedly killing the Iranian intelligence minister, and the U.S. using heavy bombs to strike missile facilities near the Strait of Hormuz have intensified market tensions, pushing WTI crude oil prices up from about $92 to nearly $96.

In terms of macro data, the U.S. PPI for February rose 0.7% month-on-month, higher than the expected 0.3%; core PPI increased by 0.5%, also above expectations. Notably, this inflation data does not yet account for the recent surge in oil prices, further exacerbating market concerns about inflation stickiness and weakening expectations for interest rate cuts.

Against this backdrop, the cryptocurrency market weakened in sync with U.S. stock futures, with the three major stock index futures turning from gains to declines of about 0.4%. Market focus has shifted to the upcoming interest rate decision from the Federal Reserve and Chairman Powell's statements on growth risks and inflation pressures. Meanwhile, Trump has once again publicly called for interest rate cuts, adding a political variable to this meeting.