Bitcoin falls sharply amid geopolitical risks and ETF outflows, defying resilience as traders assess macroeconomic pressures.
Bitcoin slid 23% to $57K, driven by ETF outflows and escalating geopolitical tensions in the Middle East. The decline reflects broader market unease over Iran’s reported targeting of American ships in the Straits of Hormuz, a critical chokepoint for global oil trade.
Prior to the drop, BTC had shown resilience despite macroeconomic headwinds, including weaker-than-expected US Q1 GDP growth of 1.6% and rising inflation, with PCE up 3.3%. Gold, a traditional safe-haven asset, rebounded as investors sought stability amid the volatility.
Traders are closely monitoring the situation, with geopolitical risks overshadowing positive developments like Robinhood’s AI trading tools and a 3% cash-back card launch, which had previously buoyed sentiment.