Bitcoin Slides Near Two-Month Low as ETF Outflows and Geopolitical Tensions Weigh

Bitcoin Nears Early-April Lows Amid Geopolitical Strains

Bitcoin fell 1.1% to $73,261.4 by 02:12 ET (06:12 GMT) on Monday, leaving it close to its weakest levels since early April. The token has recorded three consecutive weeks of losses, with downside pressure intensifying last week amid heightened uncertainty surrounding the U.S.-Israel war on Iran.

Risk appetite was further dented as the U.S. and Iran exchanged missile and drone strikes on at least two occasions over the past week, including attacks in the early hours of Monday. These developments have tested an already fragile ceasefire and undermined earlier claims from U.S. officials that a peace deal with Iran was close, contributing to a weaker environment for risk assets such as cryptocurrencies.

Institutional ETF Outflows Deepen Crypto Market Pressure

Bitcoin’s weakness was compounded by sustained selling from institutional investors in U.S.-listed Bitcoin exchange-traded funds. Data from aggregator SoSoValue showed $1.4 billion in outflows from U.S. Bitcoin ETFs over the past week, the largest weekly withdrawal since late January.

Last week marked the third consecutive week of more than $1 billion in capital outflows from Bitcoin ETFs, signaling a persistently negative stance toward crypto markets among institutional participants. A substantial portion of last week’s outflows came from a $1.26 billion block sale in BlackRock’s iShares Bitcoin Trust (IBIT), which crypto investment firm NYDIG described as likely reflecting a rapid exit by a large investor.

The combination of geopolitical uncertainty and ETF-related selling has weighed broadly on digital assets. Ether, the world’s second-largest cryptocurrency, fell 2% to $1,989.01. XRP also declined 2%, while Solana and Cardano each shed about 2%. BNB underperformed major peers with a nearly 6% loss.

Among memecoins, Dogecoin slipped 0.9%, and $TRUMP dropped 2%. Most altcoins were nursing deep losses in recent weeks, broadly tracking Bitcoin’s downturn.

FAQ

Why did Bitcoin fall on Monday?
Bitcoin declined due to a combination of renewed geopolitical tensions between the U.S. and Iran, which hurt overall risk appetite, and ongoing institutional selling in U.S. Bitcoin ETFs.

How large were the recent Bitcoin ETF outflows?
U.S. Bitcoin ETFs saw $1.4 billion in outflows over the past week, marking the biggest weekly withdrawal since late January and the third straight week with more than $1 billion in outflows.

Which ETF experienced the largest single outflow?
BlackRock’s IBIT recorded a $1.26 billion block sale last week, which NYDIG indicated was likely a rapid exit by a large investor.

How did major altcoins perform?
Ether fell 2% to $1,989.01, XRP declined 2%, Solana and Cardano each lost about 2%, BNB dropped nearly 6%, Dogecoin slipped 0.9%, and $TRUMP fell 2%.