Bitcoin plunges to a six-week low amid concerns over a potential war with Iran and outflows from ETFs.
Bitcoin plunged to its lowest level in six weeks amid concerns over a potential war with Iran, while US spot Bitcoin ETFs experienced outflows of over $1.5 billion in May.
On May 28, 2569 at 10.43:XNUMX a.m., Bloomberg News reported that Bitcoin fell to its lowest level in over six weeks. Amid concerns about the global economic outlook and selling pressure from US digital asset ETFs, investor confidence in the cryptocurrency market is declining.
Bitcoin plunged as much as 2.5% to $73,294 in Singapore trading on Thursday, its lowest level since April 14. Ether, the world's second-largest cryptocurrency, fell more than 4% to $1,970, its lowest level in nearly two months.
Investors are concerned that a prolonged conflict between the United States and Iran could push inflation higher and increase the likelihood of the Federal Reserve (Fed) raising interest rates again, even as the US stock market continues to reach new all-time highs driven by expectations surrounding artificial intelligence (AI).
Recent data indicates that US Spot Bitcoin ETFs experienced net outflows of approximately $1,500 billion in May.
Sean McNulty, Head of Derivatives Trading for the Asia-Pacific region at FalconX. They stated that this recent weakening of Bitcoin is due to macroeconomic factors rather than factors specific to the crypto market.
He stated that higher U.S. government bond yields and a stronger dollar are tightening financial conditions. Meanwhile, outflows from ETFs, including reports of a large block sale in the iShares Bitcoin Trust, the world's largest Bitcoin ETF, are further pressuring market confidence.
sideTony Sycamore, analyst at IG Markets They said that crypto investors are becoming more cautious while waiting for clarity on the situation in the Middle East.
“Furthermore, the stock market is showing signs of weakening, putting additional pressure on Bitcoin as investors begin to reduce their leveraged long positions after the price broke below the key support level around $70,000,” he said, adding that the short-term risks to the crypto market remain more negative.
refer : bloomberg.com
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