Bitcoin and major stock indices declined due to the US and Israel-Iran conflict, leading to record outflows from key ETFs.
Bitcoin prices dropped nearly 5% in recent trading, mirroring declines in major stock indices like the S&P 500, DOW, and Nasdaq, as the US and Israel-Iran war entered its fourth week.
Market Movements Amid Geopolitical Tensions
Crude oil prices rose 7.30% in the latest session and have surged 53% since the war began on February 28, highlighting a shift in capital flows away from riskier assets.
The Kobeissi Letter reported $64 billion in outflows from S&P 500 and Nasdaq 100 ETFs over the past three months, marking the largest on record and reversing a $50 billion inflow from November.
Spot Bitcoin ETFs experienced $253 million in outflows over the past two days, with monthly flows still positive at $1.48 billion but offset by $6.3 billion in cumulative outflows from November to February.
Glassnode data indicated that net realized profit-taking for BTC reached around $17 million per hour on average before slowing, as broader geopolitical uncertainty limits the market's ability to absorb selling pressure.
Crypto commentator Carlitosway noted parallels between the current war and the 2022 Russia-Ukraine conflict, where Bitcoin initially fell but then rallied 24% before dropping further, suggesting a potential extended stabilization phase for BTC.
Analyst Finish stated that Bitcoin's recovery might occur after reaching around $55,000, citing the risk-off environment due to the war and losses in the S&P 500 as factors delaying any upward momentum.
