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

Odaily According to reports, influenced by the US and Israel-Iran war, Bitcoin fell nearly 5% this week, while the S&P 500, Dow Jones, Nasdaq, and gold also declined simultaneously. Crude oil, however, rose by 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 have seen a combined outflow of $64 billion, the highest level in history, representing about 5% of total assets under management. Spot Bitcoin ETFs also recorded a net outflow of $253 million over the past two days.

Data from Glassnode shows the market is struggling to absorb selling pressure. Bitcoin's net realized profit-taking accelerated to approximately $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 similar to during the Russia-Ukraine war: a short-term rebound after the initial sell-off, followed by continued downward pressure. Analysts believe that rising energy costs, liquidity constraints, and ongoing forced selling continue to exert pressure, meaning Bitcoin's recovery will likely take longer. 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)