Recent analysis indicates a significant decline in inflows to Bitcoin ETFs in the U.S. amid rising geopolitical risks.
Decline in Bitcoin ETF Inflows
According to SoSoValue, 12 Bitcoin ETFs in the U.S. attracted $1.02 billion last week, a 26% decrease from $1.39 billion the previous week. On Monday, their inflow was $412.2 million, but by Friday it plummeted to just $6.37 million, a 98% drop.
Geopolitical Tension Impacting the Market
The decline in demand was triggered by geopolitical threats, particularly after President Donald Trump set a two-week deadline to decide on whether the U.S. would participate in military actions against Iran. This created market instability, prompting investors to withdraw from risky assets like cryptocurrency.
Bitcoin's Outlook Amid Uncertainty
Despite the downturn, Bitcoin managed to rebound above $100,000, fueled by increased trading volumes. The future trajectory of Bitcoin is likely to depend on the pace of diplomatic resolutions and inflows to ETFs, which have historically influenced its valuation during geopolitical crises.
The current state of the Bitcoin market highlights the impact of global events on investor sentiment. Investors should closely monitor developments.
