Analysis: Bitcoin, the S&P 500, and Nasdaq are experiencing synchronized pressure as the Iran conflict intensifies market risk aversion.

Odaily Planet Daily reports that influenced by the US and Israel–Iran conflict, Bitcoin has fallen nearly 5% this week. The S&P 500, Dow Jones, Nasdaq, and gold all declined simultaneously, while crude oil rose 7.3%, increasing by 53% since the outbreak of war on February 28.

Kobeissi Letter reports that over the past three months, a total of $64 billion has been withdrawn from the S&P 500 ETF and Nasdaq 100 ETF, the highest level in history, with withdrawals accounting for about 5% of total managed assets. Spot Bitcoin ETFs also saw a net outflow of $253 million in the past two days.

Glassnode data shows that the market is struggling to absorb selling pressure. Bitcoin’s net realized profit-taking once accelerated to about $17 million per hour but then lost momentum, with prices falling below $70,000. Analysts point out that geopolitical uncertainties have compressed market demand depth, making even moderate sell-offs difficult to absorb.

Historical experience indicates that Bitcoin’s performance during the Russia–Ukraine war is repeating: a short-term rebound after initial sell-offs, followed by continued downward pressure. Analysts believe that rising energy costs, liquidity tightening, and persistent forced selling continue to pressure Bitcoin, requiring more time to recover. Finishing suggests that Bitcoin may bottom around $55,000 and gradually rebound, but the market remains cautious until the Iran conflict is resolved. (Cointelegraph)