Analysis: Bitcoin and S&P, Nasdaq Under Synchronized Pressure as Iran War Intensifies Market Risk Aversion

Odaily News According to reports, influenced by the US and Israel-Iran war, Bitcoin fell nearly 5% this week. The S&P 500, Dow Jones, Nasdaq, and gold all declined in sync, while crude oil rose 7.3%, marking a 53% increase since the war's outbreak on February 28.

The Kobeissi Letter reported that over the past three months, S&P 500 ETFs and Nasdaq 100 ETFs saw a combined outflow of $64 billion, a record high, with withdrawals accounting for approximately 5% of total assets under management. Spot Bitcoin ETFs also recorded a net outflow of $253 million over the past two days.

Glassnode data shows the market is struggling to absorb selling pressure. Bitcoin's net realized profit-taking accelerated to around $17 million per hour at one point but subsequently lost momentum, with the price falling back below $70,000. Analysis indicates that geopolitical uncertainty has compressed market depth, making it difficult to digest even medium-sized sell-offs.

Historical experience suggests a replay of Bitcoin's price action during the Russia-Ukraine war: a short-term rebound following initial selling, but then a continuation of downward pressure. Analysts believe that rising energy costs, liquidity constraints, and ongoing forced selling continue to exert pressure, requiring more time for Bitcoin's recovery. Finish predicts that Bitcoin may gradually recover after finding a bottom around $55,000, but the market is expected to remain cautious until the Iran war subsides. (Cointelegraph)