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Bitcoin Falls to a Four-Month Low Amid Rising Tensions Around Iran
Bitcoin dropped to nearly a four-month low on Thursday, extending its decline as negative sentiment continued to weigh on cryptocurrency markets. Escalating tensions in the Middle East increased risk aversion among investors and pushed capital toward safer assets.
Persistent institutional outflows from major spot Bitcoin ETFs have also added pressure to the world's largest cryptocurrency, as investors increasingly rotate into other sectors, particularly artificial intelligence-related stocks.
Bitcoin fell to a nearly four-month low of $61,442.7 before recovering some losses. By 01:30 GMT, it was trading around $63,832.4.
Bitcoin Under Pressure from Continued ETF Outflows
The sharp decline in Bitcoin coincided with ongoing capital withdrawals from spot Bitcoin ETFs, signaling that institutional investors continue to reduce exposure to crypto markets.
According to SoSoValue data, spot Bitcoin ETFs recorded approximately $396 million in outflows on Wednesday, adding to roughly $1.02 billion that left the funds earlier in the week.
These withdrawals followed a broader trend in which institutional investors collectively pulled around $3.7 billion from Bitcoin ETFs over the past three weeks.
The outflows are largely attributed to growing risk-off sentiment fueled by macroeconomic uncertainty surrounding the conflict between the United States and Iran.
Another bearish factor came from Strategy, the largest corporate holder of Bitcoin. Earlier this week, the company sold a portion of its Bitcoin holdings for the first time in nearly four years. Although the sale was relatively small, it reignited concerns about the long-term sustainability of Strategy’s treasury model, which depends heavily on continued Bitcoin price appreciation.
As a result of the recent selloff, Bitcoin has retraced to levels roughly 50% below its all-time high reached in October.
ETF outflows have also been driven by investors reallocating capital away from non-yielding crypto assets and toward artificial intelligence stocks, which offer both fundamental growth prospects and exposure to one of the fastest-growing areas of technology.
Crypto Market Today: Altcoins Continue to Decline Amid Iran-Related Concerns
The broader cryptocurrency market continued to move lower alongside Bitcoin, with few positive catalysts supporting prices.
Ongoing uncertainty surrounding the conflict between the United States and Iran, combined with a lack of clarity regarding peace negotiations, continues to suppress investor appetite for risk assets, particularly speculative assets that generate no income.
Additional pressure comes from capital flows into the U.S. dollar, as investors prepare for the possibility that a prolonged conflict could increase energy prices and fuel inflation.
Ethereum, the world's second-largest cryptocurrency by market capitalization, fell 4.6% to $1,785.40, while XRP declined 4.1% to $1.1882.
Solana, Cardano, and BNB lost between 5% and 9%.
Among meme coins, Dogecoin fell 4%, while TRUMP dropped 7.8%.
See also: "Bitcoin Odds of Falling Below $50,000 Rise as Analysts Warn of Further Downside"
