Bitcoin faces selling pressure amid geopolitical tension and inflation fears

Bitcoin is facing significant selling pressure, trading below the $78,000 mark. This decline is attributed to escalating geopolitical tensions in the Middle East, rising oil prices, and concerns regarding inflation ahead of upcoming U.S. CPI data.

Analysts are closely monitoring the $78,300 support level. A failure to maintain this level could signal a broader downward trend similar to the market decline seen in May. Concurrently, demand for U.S. spot Bitcoin ETFs has weakened, shifting toward net outflows.

Market data indicates a dominance of sellers on centralized exchanges, with weekly trading volumes and spot trading activity showing signs of deceleration. While volatility has increased and open interest in futures has slightly decreased, the market appears to be in a consolidation phase rather than a state of panic.