Bitcoin under pressure amid ETF outflows and renewed US-Iran risks

Bitcoin (BTC) remains under pressure, trading below $78,200 at the time of writing on Thursday after falling around 3% since the beginning of the week.

Weak institutional demand, alongside escalating geopolitical tensions between the United States and Iran near the Strait of Hormuz, continues to weigh on investors’ appetite for riskier assets, putting further pressure on the world’s largest cryptocurrency.

Signs of caution in institutional demand

Institutional demand for Bitcoin is showing early signs of caution.

Data from SoSoValue showed that US spot Bitcoin exchange-traded funds (ETFs) recorded $120.24 million in outflows on Wednesday, following $46.65 million in outflows the previous day.

If these withdrawals persist and intensify during the week, Bitcoin could face a deeper correction.

Geopolitical tensions near Strait of Hormuz weigh on Bitcoin

Iran said it attacked 10 vessels near the Strait of Hormuz after the United States announced that it had sunk five Iranian oil tankers.

The developments are fueling concerns about prolonged disruptions to oil supplies from the Middle East and continue to support crude prices. West Texas Intermediate (WTI) has risen more than 5% since the beginning of the week, climbing above $95 a barrel on Thursday to its highest level since late May.