Bitcoin Price Slows as Cautious Mood Grows Amid US-Iran Tensions

Bitcoin's price recovery has slowed down as investors appear to be growing cautious amid escalating tensions in the Middle East. The Bitcoin (BTC) price rebounded slightly, trading above $79,000 on Wednesday after falling over 2.4% in the previous two days.

The institutional demand for BTC shows early signs of caution, with spot Exchange Traded Funds recording mild outflows of $45.65 million on Tuesday, breaking a three-day streak of inflows since last week.

The escalating US-Iran tensions have raised concerns about energy supplies and renewed inflationary pressures, potentially increasing the odds of the Federal Reserve's (Fed) monetary policy tightening and weighing on BTC.

Derivatives activity remains subdued, with traders gradually adopting a more hesitant stance toward Bitcoin. The total spot ETF net inflow daily chart shows that outflows are mild but growing.