Hormuz Uncertainty Weighs on Bitcoin as Institutional Demand Falters
Bitcoin's price has been under pressure this week due to cautious institutional demand and ongoing geopolitical uncertainty. The US-Iran standoff remains elevated, keeping risk sentiment capped with oil prices at a multi-year high.
US Treasury Secretary Scott Bessent said that the United States will apply measures 'that have never been seen' on Iran, while a senior Islamic Revolutionary Guard Corps adviser claimed Tehran's strategy is to make any conflict so costly that future US administrations think twice before taking military action against Iran.
Institutional demand for Bitcoin has failed to lift prices, with spot BTC ETFs recording an outflow of $332.02 million through Thursday. This indicates weakening institutional demand and cautious investor sentiment despite softer US inflation data.