Analysis: BTC's upward momentum stalled as Japanese inflation data and the potential conflict with Iran triggered risk aversion in the market.

According to Huoxun Finance, the cryptocurrency market weakened overall on Friday, with Bitcoin hovering around $77,800, its upward trend from $65,000 since Wednesday showing a significant slowdown. Ethereum was quoted at $2,300, down about 0.8% in the last 24 hours, underperforming Bitcoin. The market pressure mainly stemmed from two factors: First, Japan's March corporate service price index rose 3.1% year-on-year, exceeding market expectations, and core inflation also accelerated. The market anticipates that the Bank of Japan may signal an interest rate hike at its next policy meeting, and a stronger yen could trigger the unwinding of carry trades in global risk assets. Second, the ongoing conflict related to Iran continues to disrupt oil transportation in the Strait of Hormuz. WTI crude oil futures have risen more than 40% to $96 per barrel since the conflict began, and the Pentagon has warned that clearing mines will take at least six months. Global inflationary pressures may persist, further compressing the Federal Reserve's room for interest rate cuts.