Bitcoin slides as Middle East tensions rise

Bitcoin remained under pressure near $63,000 on Monday as investors reacted to renewed military strikes between Israel and Iran, marking the first direct exchange of fire since the April ceasefire agreement.

Risk appetite weakened across digital asset markets after Iran launched missiles at Israel and Israel responded with strikes on military targets in western and central Iran, prompting traders to reduce exposure to higher-risk assets.

US President Donald Trump sought to calm concerns surrounding the conflict, saying:

“Israel’s Prime Minister Benjamin Netanyahu will have no choice but to accept a peace agreement with Iran.”

Institutional demand also remained weak, with spot Bitcoin ETFs recording $1.72 billion in net outflows last week, while spot Ethereum ETFs extended their losing streak with $168 million in withdrawals, according to SoSoValue data.

Bitcoin’s technical outlook remained bearish as the cryptocurrency traded below its 50-day, 100-day and 200-day exponential moving averages, with momentum indicators continuing to point lower despite oversold conditions.

Ethereum changed hands near $1,667 after failing to hold above $1,700, while XRP traded around $1.14 despite attracting $2.62 million in ETF inflows during a fifth consecutive week of positive flows.

Unless geopolitical tensions ease and institutional investors return to crypto ETFs, analysts expect Bitcoin, Ethereum and XRP to remain vulnerable to further downside pressure in the near term.

At the time of reporting, Bitcoin price was $62,998.85.