Bitcoin (BTC) experienced a 3% decline, trading below $71,000 after negotiations between the United States and Iran in Islamabad, Pakistan, collapsed. The talks, centered around nuclear weapons, ended without an agreement, prompting US President Donald Trump to threaten a blockade of the Strait of Hormuz, a vital oil shipping route. This escalation has raised fears of significant economic repercussions, including a potential spike in inflation, with predictions suggesting US Consumer Price Index (CPI) inflation could exceed 4%. In the wake of these developments, Bitcoin saw nearly $350 million in liquidations as traders reacted to the heightened market volatility. Analysts warn that if military actions continue, the US economy could face severe challenges, including recession risks by 2026. The upcoming March Producer Price Index (PPI) report is expected to provide further insights into inflation trends.