Bitcoin Falls Toward Two-Month Low as ETF Outflows and Geopolitical Tensions Weigh
Bitcoin extended its recent decline on Monday, hovering near its lowest level in two months as investors reacted to escalating tensions between the United States and Iran and continued heavy selling pressure from institutional investors.
The world’s largest cryptocurrency dropped 3.1% to $71,614, remaining close to levels last seen in early April. Broader cryptocurrency markets also moved lower as risk appetite weakened across financial markets.
U.S.-Iran Conflict Hurts Market Sentiment
Bitcoin has now recorded three consecutive weeks of losses, with selling accelerating amid growing uncertainty surrounding the ongoing conflict between the United States and Iran.
Military tensions intensified after both countries exchanged missile and drone strikes on multiple occasions over the past week, including new attacks reported early Monday.
The renewed hostilities have raised doubts about the durability of the current ceasefire and reduced optimism surrounding the possibility of a near-term peace agreement.
As geopolitical uncertainty increased, investors shifted away from risk assets, placing additional pressure on cryptocurrencies.
Massive Bitcoin ETF Outflows Continue
One of the biggest factors behind Bitcoin’s recent weakness has been persistent selling in spot Bitcoin exchange-traded funds (ETFs).
According to data from SoSoValue, U.S. Bitcoin ETFs experienced approximately $1.4 billion in net outflows during the past week, marking the largest weekly withdrawal since late January.
More importantly, the latest outflow represented the third consecutive week of ETF withdrawals exceeding $1 billion, signaling a sustained decline in institutional demand for Bitcoin exposure.
The trend suggests that many large investors remain cautious about the near-term outlook for cryptocurrencies amid increasing macroeconomic and geopolitical risks.
BlackRock ETF Sale Sparks Concern
A significant portion of the recent ETF outflows was linked to BlackRock’s popular iShares Bitcoin Trust (IBIT).
Market data showed roughly $1.26 billion exiting the fund during the week. Analysts at crypto investment firm NYDIG suggested the move likely reflected a large investor rapidly reducing exposure rather than widespread panic selling.
Nevertheless, the scale of the withdrawal highlighted growing caution among institutional market participants.
Strategy Sells Bitcoin for First Time
Adding to investor concerns, Strategy announced its first Bitcoin sale since launching its aggressive Bitcoin treasury strategy.
According to a regulatory filing, the company sold 32 Bitcoin between May 26 and May 31 at an average price of $77,135 per coin, generating approximately $2.5 million in proceeds.
The company stated that the funds would be used to support distributions related to its preferred stock.
Despite the sale, Strategy remains one of the largest corporate Bitcoin holders in the world, owning 843,706 Bitcoin with an average acquisition cost of $75,699 per coin as of May 31.
Altcoins Follow Bitcoin Lower
The broader cryptocurrency market also remained under pressure as investors reduced exposure to digital assets.
Ethereum, the second-largest cryptocurrency by market capitalization, fell approximately 2% to $1,977. XRP declined nearly 4%, while Solana and Cardano each lost around 3%.
BNB underperformed many major cryptocurrencies, dropping nearly 6% during the session.
Among popular meme coins, Dogecoin and TRUMP token each declined roughly 2%.
Institutional Sentiment Remains Key
The combination of escalating geopolitical tensions, weakening investor confidence, and sustained ETF outflows has created a challenging environment for Bitcoin and the broader crypto market.
While long-term adoption trends remain intact, institutional flows continue to play a critical role in determining short-term price direction.
Until ETF demand stabilizes and geopolitical risks ease, Bitcoin may continue facing heightened volatility and pressure near recent lows.
