Bitcoin fell to nearly a four-month low on June 4, extending its decline amid persistent negative sentiment toward cryptocurrencies. Escalating tensions in the Middle East have increased investors’ risk aversion, putting additional pressure on digital assets.<\/p>\n
Ongoing institutional capital outflows from major Bitcoin ETFs continue to weigh on the world’s largest cryptocurrency, as investors shift their focus to more attractive sectors, particularly artificial intelligence.<\/p>\n
Bitcoin dropped to a near four-month low of $61,442.7 before partially recovering and trading at around $63,832.4.<\/p>\n
The sharp decline came amid sustained capital outflows from spot Bitcoin ETFs, indicating that institutional investors are continuing to exit crypto markets.<\/p>\n
According to SoSoValue, Bitcoin ETFs recorded approximately $396 million in outflows on Wednesday, adding to the roughly $1.02 billion withdrawn earlier in the week.<\/p>\n
This week’s outflows followed a broader trend, with institutional investors collectively pulling $3.7 billion from Bitcoin ETFs over the past three weeks.<\/p>\n
The capital flight has been driven by increasing risk aversion amid macroeconomic uncertainty related to the conflict between the United States and Iran.<\/p>\n
Strategy, the largest corporate holder of Bitcoin, also sent bearish signals to the market this week by selling a portion of its Bitcoin holdings for the first time in nearly four years. Although the sale was relatively small, it renewed concerns about the long-term sustainability of Strategy’s treasury model, which depends on continued appreciation in Bitcoin’s price.<\/p>\n
As a result of the recent decline, Bitcoin has retreated to levels approximately 50% below its October all-time high.<\/p>\n
ETF outflows have also been fueled by investors reallocating funds from non-yielding crypto assets into AI-related stocks, which offer stronger fundamentals and exposure to rapidly growing technologies.<\/p>\n
The broader cryptocurrency market followed Bitcoin lower amid a lack of positive catalysts.<\/p>\n
Ongoing uncertainty surrounding the U.S.-Iran conflict, as well as the absence of progress in peace negotiations, continues to dampen risk appetite, particularly for speculative, non-yielding assets.<\/p>\n
At the same time, capital flows into the U.S. dollar\u2014driven by expectations of a prolonged conflict that could fuel inflation through higher energy prices\u2014are adding further pressure to crypto markets.<\/p>\n
Ether, the world’s second-largest cryptocurrency by market capitalization, fell 4.6% to $1,785.40, while XRP declined 4.1% to $1.1882. Solana, Cardano, and BNB lost between 5% and 9%. Among meme coins, Dogecoin dropped 4%, while $TRUMP fell 7.8%.<\/p>\n","protected":false},"featured_media":151708,"menu_order":0,"template":"","newscat":[9],"newstag":[],"issues":[],"class_list":["post-151707","news","type-news","status-publish","has-post-thumbnail","hentry","newscat-novosti"],"_links":{"self":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/news\/151707","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/types\/news"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/media\/151708"}],"wp:attachment":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/media?parent=151707"}],"wp:term":[{"taxonomy":"newscat","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/newscat?post=151707"},{"taxonomy":"newstag","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/newstag?post=151707"},{"taxonomy":"issues","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/issues?post=151707"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}