Analysis: BTC Defies Market Trends Amid Middle East Turmoil, Institutional Capital Inflows Become Key Support

Odaily News In the context of escalating conflicts between the US-Israel and Iran, and as the market reprices Middle East geopolitical risks alongside delayed expectations for a near-term Fed rate cut, Bitcoin continues to exhibit strong performance. Analysis suggests that after several weeks of consolidation, the reallocation of institutional capital has provided significant support for Bitcoin's rebound, with spot ETF inflows underpinning the price recovery. Furthermore, on-chain and derivatives data also indicate a resurgence in risk appetite. Bitcoin perpetual futures open interest recorded its largest single-day increase since July 2025, signaling significant leverage expansion. However, there may be a time lag between ETF share trading and actual Bitcoin spot purchases, and the settlement and hedging mechanisms of institutional products could potentially dampen the immediate transmission effect on short-term prices. (The Block)