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

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

The Kobeissi Letter report indicated that over the past three months, S&P 500 ETFs and Nasdaq 100 ETFs saw a combined outflow of $64 billion, reaching a historical high. The withdrawn funds account for approximately 5% of total assets under management.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 that the market is struggling to absorb selling pressure. Bitcoin's net realized profit-taking once accelerated to about $17 million per hour but subsequently lost momentum, with the price falling back below $70,000. Analysis points out that geopolitical uncertainty has compressed market demand depth, making it difficult to digest even medium-scale sell-offs.

Historical experience shows that Bitcoin's trend during the Russia-Ukraine war is repeating: a short-term rebound after the initial sell-off, followed by continued downward pressure. Analysts believe that rising energy costs, liquidity constraints, and persistent forced selling continue to exert pressure, requiring more time for Bitcoin to recover. Finish predicts that Bitcoin may gradually recover after finding a bottom around $55,000, but the market remains cautious until the Iran war subsides. (Cointelegraph)