The latest escalation comes at a delicate technical moment for Bitcoin, which is approaching its monthly close after already struggling with inflation-driven macro pressure. Traders had recently failed to reclaim the $70,000 level, and fresh geopolitical instability added to bearish momentum, compounding concerns from hot US inflation data earlier in the week.

Despite the drop, key structural support levels remain intact for now. However, Bitcoin is on track to record its fifth consecutive month of losses — a streak not seen in seven years. With traditional markets set to reopen soon, traders are watching whether equities and bond yields confirm crypto’s weekend reaction or trigger another wave of volatility.