Bitcoin ETF Flows Cool to $619 Million as Oil Prices Spike
Bitcoin’s price rally and subsequent pullback coincided with increased crypto fund flows and heightened Middle East geopolitical tensions. Early last week saw $1.44 billion in crypto fund inflows, largely driven by U.S. investors and a U.S.-Iran conflict, but outflows later reduced the net weekly inflow to $619 million. Bitcoin attracted $521 million of the inflows, while Ethereum and Solana also saw gains; XRP faced outflows. Bitcoin surged nearly 11% to $73,648 from March 1–5, then dropped about 8% to $67,777 by week’s end. Portfolio managers trimmed risk ahead of the weekend and amid uncertainty, typical of broader capital markets, not just crypto. Escalating geopolitical risk, especially Iran’s closure of the Strait of Hormuz and spiking oil prices, contributed to reduced institutional risk appetite. Rising oil prices pressured equities and consequently Bitcoin, which still behaves as a risk asset and follows equity market trends. Experts predict continued uncertainty, high oil prices, and risk aversion could add further short-term downside for Bitcoin. Investor sentiment has weakened, and lingering macro pressures could drive further outflows from crypto into safer assets.
