Bitcoin Stays Near Two-Month Low as Middle East Tensions and ETF Outflows Weigh on Market

Bitcoin remained under pressure on Monday, hovering near its lowest level in two months as investor sentiment deteriorated following renewed military escalation between the United States and Iran. The latest developments have reduced expectations for a near-term diplomatic breakthrough, prompting investors to move away from risk-sensitive assets.

At the time of writing, Bitcoin was trading around $73,261, down roughly 1.1% on the day. The leading cryptocurrency remains close to its weakest levels since early April, extending a challenging period that has seen sustained selling pressure across the broader crypto market.

Geopolitical Uncertainty Adds Pressure on Bitcoin

Bitcoin has now recorded three consecutive weeks of losses, with market concerns intensifying amid the ongoing conflict involving the United States, Israel, and Iran.

Over the past week, Washington and Tehran exchanged multiple rounds of missile and drone attacks, with the latest military activity reported early Monday. The renewed hostilities have raised doubts about the stability of the existing ceasefire arrangement and weakened optimism surrounding a potential peace agreement.

As geopolitical risks continue to rise, investors have shown a growing preference for safer assets, reducing exposure to cryptocurrencies and other risk-based investments.

Institutional Investors Continue Exiting Bitcoin ETFs

In addition to geopolitical concerns, Bitcoin has faced significant selling pressure from institutional investors through exchange-traded funds (ETFs).

According to data from SoSoValue, U.S.-listed Bitcoin ETFs recorded approximately $1.4 billion in net outflows during the past week. This marked the largest weekly withdrawal since late January and extended a negative trend that has persisted for three consecutive weeks.

Notably, Bitcoin ETFs have now experienced more than $1 billion in weekly outflows for three straight weeks, highlighting weakening institutional confidence in the cryptocurrency market.

Overall, ETF-related selling has exceeded $3 billion during the past three weeks, creating an additional headwind for Bitcoin prices.

BlackRock’s IBIT Sees Major Capital Withdrawal

A significant portion of the recent outflows came from BlackRock’s iShares Bitcoin Trust (IBIT).

Crypto investment firm NYDIG reported that approximately $1.26 billion worth of IBIT shares were sold in a single block transaction. Analysts believe the move likely reflected a large investor rapidly reducing exposure to Bitcoin amid increasing market uncertainty.

The substantial withdrawal has raised concerns about institutional sentiment and the potential for further selling if market conditions remain volatile.

Altcoins Follow Bitcoin Lower

The weakness in Bitcoin also spread throughout the broader cryptocurrency market, with most major altcoins posting losses.

Ethereum, the second-largest cryptocurrency by market capitalization, declined around 2% to trade near $1,989. XRP also fell approximately 2% during the session.

Meanwhile, Solana and Cardano each recorded losses of roughly 2%, while BNB underperformed the broader market with a decline of nearly 6%.

Memecoins Remain Under Pressure

Memecoins were not spared from the broader market downturn.

Dogecoin slipped nearly 1%, while the TRUMP token fell around 2% as traders continued reducing exposure to higher-risk digital assets.

With geopolitical tensions escalating and institutional investors continuing to pull capital from Bitcoin ETFs, cryptocurrency markets remain vulnerable to further volatility in the near term.