Bitcoin fell below $77,000 levels on Tuesday as renewed U.S. strikes on Iranian targets dented hopes for a near-term peace deal, while cooling exchange-traded fund inflows added to pressure on the world’s largest cryptocurrency.
Bitcoin last traded 1.9% lower at $75,912.3 by 17:16 ET (21:16 GMT), after rising near $78,000 in the previous session.
Middle East peace uncertainty, cooling ETF flows weigh
Hopes for an imminent resolution to the nearly three-month old conflict in the Middle East were boosted after President Donald Trump on Saturday said a memorandum of understanding on a peace deal with Iran had been "largely negotiated" following a call with regional leaders.
However, the mood was clouded after the U.S. military said it had carried out what it described as "defensive" strikes in southern Iran, sinking two Islamic Revolutionary Guard Corps vessels trying to lay mines in the Strait of Hormuz. The attacks sparked a retaliation from Tehran, which fired missiles at U.S. planes. American attacks then hit missile launchers near Bandar Abbas, the Wall Street Journal reported, citing a U.S. official.
The strikes dented hopes for a peace deal, with oil prices mixed on Tuesday as investors assessed the situation.
The latest decline in Bitcoin comes after a volatile month for digital assets, with traders repeatedly swinging between optimism over a possible U.S.-Iran breakthrough and fears of escalation in the conflict.
ETF demand, a major pillar supporting bitcoin this year, also showed signs of slowing. U.S. spot bitcoin ETFs recently recorded net outflows after a strong stretch of institutional buying earlier this quarter. Bitcoin and crypto in general has also been under pressure amid elevated Treasury yields and expectations for Federal Reserve interest rate hikes.
"U.S. spot Bitcoin ETFs recorded a net outflow of $105.19 million on 22 May, the sixth consecutive outflow day, with cumulative six-day redemptions of roughly $1.55 billion — about 1.6% of total ETF assets. The combined picture is investors trimming crypto exposure, not panicking. Funding is steady, open interest is well off the highs, and options traders are pricing in less risk of a big move, not more," Dessislava Ianeva, analyst at Nexo Dispatch, said.
Investors will now focus on key U.S. inflation data later this week, with the personal consumption expenditures (PCE) price index -- the Fed’s preferred inflation gauge -- due on Thursday for further rate clues.
"Thursday’s April PCE inflation print is the week’s main catalyst for crypto, as it will shape how the Fed responds in coming meetings," Ianeva added.
Crypto price today: altcoins edge lower
Most altcoins also fell on Tuesday, following Bitcoin.
World no.2 crypto Ethereum lost 1.7% to $2,074.59.
World no. 3 crypto XRP slipped 1.7% as well to $1.3312.
Solana declined 1.8% while Cardano dipped 1.7%.
source https://www.investing.com/news/cryptocurrency-news/bitcoin-dips-below-77k-on-iran-peace-uncertainty-etf-outflows-4708760
