Bitcoin fell as much as 1.5% on Thursday to around $74,017 during Singapore trading hours, its lowest level since 20 April, as rising geopolitical tensions and persistent institutional selling weighed on risk assets. Ether, the second-largest cryptocurrency by market cap, dropped more than 2% over the same period.
The sell-off reflects growing investor concern that military escalation between the United States and Iran could push global inflation higher and keep interest rates elevated for longer. That prospect has prompted investors to cut exposure to speculative assets, even as equity markets tied to artificial intelligence have continued to hold up relatively well.
Bitcoin ETFs have added to the pressure. US-listed spot Bitcoin funds have recorded net outflows of close to $1.5 billion since the start of May. Shawn McNulty, head of Asia-Pacific derivatives trading at FalconX, said the weakness was driven more by macroeconomic factors than anything specific to crypto markets. He pointed to rising US Treasury yields and a stronger dollar as forces tightening global financial conditions, and noted reports of heavy selling in the iShares Bitcoin Trust, the largest spot Bitcoin ETF by assets.
Tony Sycamore, a market analyst at IG Markets, said crypto traders had become more cautious while waiting for clarity on Middle East developments. He added that a pullback in equities from recent highs had led investors to reduce leveraged long positions. Sycamore warned that Bitcoin’s break below key support in the mid-$70,000 range strengthens the case for continued near-term downside pressure, particularly if the dollar and Treasury yields stay elevated.
