Bitcoin Plunges to 4-Month Low as Geopolitical Tensions, ETF Outflows Bite

Bitcoin dropped to a four-month low of $61,311 before staging a modest recovery to around $62,580. The sell-off was triggered by escalating geopolitical tensions, sustained outflows from spot Bitcoin ETFs, and MicroStrategy's first sale of Bitcoin in years.

The downturn rippled across the crypto equity space. Shares of MicroStrategy, Coinbase, and Circle all posted losses. Bitcoin miners were hit even harder, with Marathon Digital Holdings, Riot Platforms, CleanSpark, Hut 8, and Core Scientific all seeing steep declines.

Analysts point to a broader rotation of capital out of Bitcoin and into AI-focused investments. The risk-off sentiment is expected to persist as markets monitor developments in the Israel-Iran conflict and any major institutional announcements.