Bitcoin Slumps Amid ETF Outflows and Escalating Middle East Tensions
Bitcoin is facing increased pressure due to weak institutional demand and escalating geopolitical tensions between the US and Iran.
Data from SoSoValue shows that US spot Bitcoin exchange-traded funds (ETFs) recorded $120.24 million in outflows on Wednesday, following $46.65 million in outflows the previous day.
The Strait of Hormuz has become a focal point for tensions between the two countries, with Iran attacking 10 vessels and the US announcing that it had sunk five Iranian oil tankers.
This latest wave of conflict is keeping the geopolitical risk premium elevated, potentially weighing on investors' appetite for riskier assets, including Bitcoin.