Analysis: BTC's Resilience Amid Middle East Turmoil, Institutional Capital Inflow Becomes Key Support

Odaily According to reports, amid escalating conflicts between the US-Israel and Iran, and as the market reprices Middle East geopolitical risks and delays expectations for a near-term Fed rate cut, Bitcoin's price remains strong. Analysis suggests that after several weeks of consolidation, the repositioning 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, showing significant leverage expansion. However, there may be a time lag between ETF share trading and actual Bitcoin spot purchases. The settlement and hedging mechanisms of institutional products could potentially weaken the immediate price transmission effect in the short term. (The Block)