The world’s largest crypto was close to its weakest levels since early-April
Bitcoin dropped on Monday, remaining pinned near a two-month low with risk appetite dented by renewed action between Iran and the U.S. as hopes for a peace deal waned.
Bitcoin was also reeling from a sharp selldown in exchange-traded funds by institutional investors over the past three weeks, which saw over $3 billion in sales.
Broader cryptocurrency prices also declined on Monday.
Bitcoin dropped 1.1 per cent to $73,261.4 by 06:12 GMT. The world’s largest crypto was close to its weakest levels since early-April.
Bitcoin was nursing three straight weeks of losses, with its declines coming to a head last week amid heightened uncertainty over the U.S. war on Iran.
Iran and the U.S. traded strikes on at least two separate occasions in the past week, with the latest attacks coming in the early hours of Monday.
The attacks further tested an already tenuous ceasefire between the two countries, and largely undermined claims from U.S. officials that a peace deal with Iran was close.
Weak overall risk appetite sparked a wave of selling in Bitcoin ETFs by institutional investors.
Data from aggregator SoSoValue showed a $1.4 billion outflow from U.S. ETFs in the past week, their biggest dump since late-January.
Last week’s outflow was the third straight week of more than $1 billion capital outflows from Bitcoin ETFs, indicating that institutional investors were growing persistently negative on crypto markets.
A bulk of last week’s outflows came from a $1.26 billion block sale of BlackRock’s IBIT, which crypto investment firm NYDIG said was likely a rapid exit by a large investor.
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