Analysis: Bitcoin Faces Pressure Alongside S&P and Nasdaq as Iran War Escalates Market Risk Aversion
Odaily reported that due to the impact of the US and Israel–Iran war, bitcoin fell nearly 5% this week. The S&P 500, Dow Jones, Nasdaq, and gold also declined simultaneously, while crude oil rose by 7.3%, with a cumulative increase of 53% since the outbreak of the war on February 28.
The Kobeissi Letter reported that over the past three months, the S&P 500 ETF and Nasdaq 100 ETF saw a combined outflow of $64 billions, marking a historic high. The withdrawn funds accounted for about 5% of total assets under management. Spot bitcoin ETFs also recorded a net outflow of $253 millions in the past two days.
Glassnode data shows that the market is struggling to absorb selling pressure. Bitcoin's net realized profit-taking once accelerated to about $17 millions per hour, but then lost momentum, with prices falling below $70,000. Analysts pointed out that geopolitical uncertainty has compressed market demand depth, making it difficult to digest even medium-sized sell-offs.
Historical experience shows that bitcoin's price movement during the Russia–Ukraine war is repeating: after initial selling, there was a short-term rebound, but downward pressure soon resumed. Analysts believe that rising energy costs, tight liquidity, and persistent forced selling are putting continued pressure on bitcoin, making recovery take longer. Finish expects that bitcoin may bottom out near $55,000 and gradually recover, but the market remains cautious as long as the Iran war is unresolved. (Cointelegraph)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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