Bitcoin is dropping again, now below $71,550 with a 1.84% decline in the last 24 hours. The same pattern continues to repeat - a surge in the middle of the week, then a decline over the weekend. This week, the dollar is very strong, the highest in a year, which directly weighs on all cryptocurrencies. Expectations of a delay in the Federal Reserve's interest rate cuts are also putting pressure on the market.

Looking at on-chain data, about 43% of the total Bitcoin supply is now in a loss position. This means that every time there's a rally, loss-making holders have an incentive to sell and break even, so selling pressure persists. That's why last week's push to the highest levels couldn't last long.

But there's a positive side - inflows into stablecoins have increased significantly, reaching $1.7 billion this week. This could be capital waiting to re-enter the market. Ether dropped 1.29% to $2,210, Solana fell 2.71% to $82.17, BNB decreased 2.11% to $593.70. However, over the past 7 days, Bitcoin is still up 6.89% and Ethereum up 8.58%, so the overall trend remains positive. The situation in the Middle East and persistent inflation are the main factors making investors cautious right now.