Bitcoin Under Pressure as War Risks, FOMC Weakness, and ETF Outflows Converge

Bitcoin's August began under pressure as geopolitical tensions and economic factors weighed on its price. Fresh attacks by Iran in the Strait of Hormuz raised concerns about energy supplies, while US military escorts increased the risk of a direct response.

The Federal Reserve left interest rates unchanged, contributing to a $3,000 drop in Bitcoin's value over several days. Rising oil prices and inflation concerns further added pressure on the cryptocurrency, as did a stronger dollar and higher Treasury yields.

Spot Bitcoin ETFs also recorded net outflows of $61.53 million after attracting more than $200 million during the previous run.

Ali Martinez pointed to a TD Sequential sell signal on Bitcoin's three-day chart, while Michaël van de Poppe noted historical links between Bitcoin and global equity markets.