Geopolitical Tensions and ETF Outflows Put Bitcoin Under Pressure

Bitcoin dropped sharply ahead of the US market open on Tuesday, falling 1.7% to roughly $67,600 and extending a volatile start to 2026. The move tracked weakness in equity futures, with Nasdaq 100 contracts down 0.9% and S&P 500 contracts down 0.6%. The coin’s correlation with high‑beta tech stocks has strengthened, leaving it sensitive to risk‑off moves as tensions around Iran rise, debate over AI’s economic impact intensifies, and uncertainty builds over Federal Reserve rate cuts after recent inflation data, Walter Bloomberg wrote on X.

That backdrop, combined with US‑listed Bitcoin ETF outflows of $360 million last week—the fourth straight week of withdrawals—and leverage unwind, has pushed Bitcoin more than 50% below its October 2025 peak of $126,000; analysts now view $60,000 as key near‑term support, and Galaxy Digital’s head of research Alex Thorn projects the 200‑week average near $58,000.

United States

bitcoin, bitcoin etf, etf outflows, leverage unwind, nasdaq 100, s&p 500, high-beta tech, iran tensions, federal reserve, rate cuts