Bitcoin Drops 6% Amid Israel-Iran Tensions, ETF Flows Stabilize Markets
This week, the cryptocurrency market was challenged by intense geopolitical conflicts. As hostilities between Israel and Iran escalated, the price of Bitcoin [BTC] fell by 6%, erasing more than $200 million in market capitalization in just 72 hours. This reflected increased risk aversion among investors. However, thanks to steady ETF flows and portfolio diversification, the market quickly regained its balance, sometimes repeating the pattern of sudden recoveries after sharp sell-offs. These are signs of the maturity of the cryptocurrency market in the face of global political turmoil.
Market Spirit Shaken, But Positive Trend Remains
During the period of escalating tensions, negative social sentiment spiked, prompting a “risk-off” response in the crypto community. According to data from Santiment, keywords related to “Israel,” “Iran,” and geopolitical terms surged from June 12 to 15, leading to a 4–6% drop in Bitcoin’s price and a loss of more than $200 billion in total market capitalization.
Source: Santiment
Negative sentiments spread throughout the community, reflecting the fear-filled market conditions at this climax. However, following historical developments such as the Ukraine war in 2022, Bitcoin quickly regained its equilibrium and maintained around $104k. Thanks to the steady flow of ETFs and the temporary easing of military conflicts, bottom-fishing demand created conditions for the price to recover. In this context, Bitcoin clearly demonstrated a higher adaptability than in the past, despite the still-unstable sentiment.
Many factors push the market to calm down again
However, the heavy atmosphere is not over yet. According to Alphractal’s Sentiment On-Chain Capflow, the risk of a positive distribution is approaching, signaling the possibility of increased selling pressure in the near future. While ETF flows have helped stabilize prices, analysts warn that global political instability and other macro risks still lurk. The crypto market needs to closely monitor new political developments to come up with appropriate strategies to minimize risks and seize the opportunity to buy at the bottom.
ETFs help Bitcoin maintain its position after the shock
Source: SoSoValue
After major fluctuations, the capital flow into ETFs has become a solid support for the market to demonstrate its solidity. Continuous net purchases on June 9, 10 and 16 helped the total value of net investment capital reach 216.48 million USD, bringing the total assets under management of ETFs to 128.18 billion USD. Thanks to this stable demand, Bitcoin has not only maintained its price around 105 thousand USD but also affirmed the role of institutional investment funds in reducing volatility and improving market reliability. This is a positive signal for the sustainable development of cryptocurrencies in the future.
The ETF investment wave also opens up many new prospects.
Observing the connection between Bitcoin and technology stocks, many analysts have commented that the cryptocurrency market has gradually become a “diversified financial instrument” rather than a hedge asset. Predictions show that, in the context of continuing macro risks, Bitcoin is increasingly showing its characteristics as a high-tech stock, with high volatility but high profit potential. This connection is also reflected in the 0.68 correlation between BTC and Nasdaq 100, showing that crypto is increasingly closely tied to institutional investors and traditional markets.
Market sentiment is not really peaceful, there are still big challenges
While Bitcoin remains stable for now, major risks remain. Political conflicts are not over yet, and the On-Chain Capflow indicator is signaling a strong long-term distribution – which often precedes sharp sell-offs.
Macro factors and geopolitical tensions could destabilize the market in the coming period, analyst Youssef warned.
“Ignoring rising political tensions only complicates them…”.
Source: Alphractal
The October 2025 forecast is predicted to be a new macro turning point, so this temporary calm may just be a waiting period before new trends emerge. Investors need to be vigilant, constantly monitor the current variables to have a suitable action plan. Stability is only temporary, and big challenges still lie ahead.
Source: https://tintucbitcoin.com/bitcoin-vuot-qua-chien-tranh-bi-quyet-to-keep-gia/
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