Bitcoin drops below $66K as Middle East tensions spark volatility.
\n$6.39 billion ETF outflows show weakening institutional crypto demand.
\nBTC swings between $63K\u2013$65K; traders watch support and rate policy.<\/p>\n
Bitcoin (BTC) has slipped below the $66,000 mark as global markets react to escalating tensions in the Middle East<\/a>.<\/p>\n The rising conflict between Iran, the US, and Israel has prompted a wave of uncertainty that is affecting risk assets, including cryptocurrencies<\/a>.<\/p>\n Bitcoin, in particular, is showing sharp intraday swings in response to news developments.<\/p>\n Early trading saw BTC fall as low as $63,000 before it recovered to above $65,000.<\/p>\n This volatility reflects a mix of geopolitical fear and active liquidations in the derivatives market, with more than $130 million in long positions being forced to close and amplifying the downward pressure on the cryptocurrency.<\/p>\n The current situation in the Middle East has made investors jittery.<\/p>\n Traditionally, Bitcoin has sometimes been viewed as a hedge during global crises, but recent behaviour shows it acting more like a risk asset.<\/p>\n Notably, Bitcoin\u2019s price has been moving in close correlation with equities, particularly major stock indices, rather than holding steady in turbulent times.<\/p>\n Gold and oil, however, have seen upward movements, with oil prices surging amid anticipation of supply disruptions.<\/p>\n The price of Gold<\/a> has also climbed modestly, reflecting its traditional safe-haven status.<\/p>\n These shifts indicate that money is flowing away from riskier assets like Bitcoin and toward instruments perceived as more stable during geopolitical stress.<\/p>\n Long-term BTC holders, however, are showing resilience.<\/p>\n After the initial sell-off, many investors took the opportunity to buy at lower levels, which contributed to a partial recovery.<\/p>\n This has prevented Bitcoin from falling as sharply as some other risk assets, demonstrating that there is still significant support at levels around $65,000.<\/p>\n US-listed spot bitcoin and ether exchange-traded funds have recorded sustained outflows over the past four months, pointing to a sharp cooling in institutional participation in digital assets.<\/p>\n Investors withdrew $6.39 billion from bitcoin ETFs during the period, the longest continuous monthly decline since the products launched in January 2024, according to SoSoValue data.<\/p>\n Ether ETFs also saw $2.76 billion in outflows.<\/p>\n The retreat coincided with a steep fall in token prices, with bitcoin dropping from above $126,000 in early October, while ether has fallen more than 60% from its August highs near $4,950.<\/p>\n Spot ETFs had previously served as a visible channel for institutional inflows after their debut and following pro-crypto political developments in 2024.<\/p>\n However, demand weakened after the October market downturn, reportedly linked to pricing inefficiencies on offshore exchange Binance.<\/p>\n Although recent sessions have seen intermittent inflows, analysts say a consistent return of capital is required for a durable recovery.<\/p>\n Traders should expect more volatility in the short term since Bitcoin is sensitive to headlines, and any further escalation in the Middle East could trigger additional sharp movements.<\/p>\n Traders should keep a close eye on the technical support level near $63,000, while resistance around $68,000 to $70,000 remains a key target for recovery.<\/p>\n Also, besides the Middle East war, monetary policy may also play a role in the next BTC price movements.<\/p>\n If central banks respond to the conflict with interest rate adjustments or liquidity measures, Bitcoin could benefit indirectly.<\/p>\n Historical trends suggest that geopolitical crises followed by rate cuts or monetary easing often support risk assets, and cryptocurrencies could be no exception.<\/p>\n The post Bitcoin price drops below $66k as Iran conflict escalates: Here\u2019s what to expect<\/a> appeared first on CoinJournal<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Bitcoin drops below $66K as Middle East tensions spark volatility. $6.39 billion ETF outflows show weakening institutional crypto demand. BTC swings between $63K\u2013$65K; traders watch support and rate policy. Bitcoin (BTC) has slipped below the $66,000 mark as global markets react to escalating tensions in the Middle East. The rising conflict between Iran, the US, […]<\/p>\n","protected":false},"author":0,"featured_media":6543,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-6542","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bitcoin"},"acf":[],"_links":{"self":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/6542","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/comments?post=6542"}],"version-history":[{"count":0,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/6542\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/media\/6543"}],"wp:attachment":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/media?parent=6542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/categories?post=6542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/tags?post=6542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}The US, Israel, Iran war has sent shockwaves across markets<\/h2>\n
Institutional demand weakens<\/h2>\n
What this means for Bitcoin going forward<\/h2>\n