Analysis: Bitcoin fell below $70,000, with short-term profit-taking and escalating tensions in the Middle East weighing on market sentiment.

CoinFeed reported on March 7th that, according to CoinDesk, Bitcoin retreated after hitting $74,000 mid-week, falling approximately 3.7% in the past 24 hours and briefly dipping below $70,000. Analysts believe this pullback primarily reflects profit-taking pressure from short-term traders, with some investors choosing to cash out after buying during the rebound. Despite the recent rebound, the market still lacks sufficient confidence in the sustainability of the upward trend. Derivatives market sentiment is also pessimistic, with funding rates remaining significantly negative, indicating that traders are paying fees to maintain short positions, while spot demand remains. Recently, stablecoin inflows into exchanges have reached a new high since 2026, and spot Bitcoin ETF inflows have also returned to net inflows.