Bitcoin declined approximately 5% at the start of the week as escalating geopolitical tensions in the Middle East triggered a broad risk-off shift across global markets.
The pullback coincided with declines in major equity indices including the S&P 500, Dow Jones and Nasdaq, while crude oil surged about 7.3%, extending gains to roughly 53% since the conflict escalated on February 28.
Market data also showed significant capital rotation, with spot Bitcoin ETFs recording $253 million in outflows over two days and The Kobeissi Letter reporting $64 billion in withdrawals from SPY and QQQ ETFs over three months.
On-chain data from Glassnode indicated heightened profit-taking, with realised gains briefly reaching $17 million per hour before bitcoin slipped back below the $70,000 level.
The firm noted that:
“Geopolitical uncertainty is compressing demand depth”,
Highlighting how liquidity constraints are limiting the market’s ability to absorb selling pressure.
Despite monthly crypto ETF inflows remaining positive at around $1.48 billion, cumulative outflows of $6.3 billion since November signal that institutional demand remains fragile.
Analysts remain divided on the outlook, with some pointing to historical patterns of short-term rallies followed by deeper corrections, while others suggest bitcoin could find support near $55,000 if risk-off conditions persist.
At the time of reporting, Bitcoin price was $68,901.75.