Bitcoin Tumbles on Iran Conflict as ETFs Snap Brutal Outflow Streak

Bitcoin dropped alongside equities on Wednesday after President Trump declared the U.S.-Iran ceasefire over following an exchange of airstrikes, pushing oil prices higher and rattling risk assets globally. CoinDesk reported that BTC and altcoins slid in tandem with stocks as the renewed Middle East conflict stoked fresh inflation fears, arriving at a particularly fragile moment for a token still trading nearly 50% below its October 2025 all-time high of roughly $126,000.

The geopolitical shock complicated what had briefly looked like a stabilizing week for Bitcoin. Earlier, BTC had climbed toward $64,000 after a weaker-than-expected U.S. jobs report raised hopes that the Federal Reserve might ease its hawkish stance. Yahoo Finance noted that the economy added only 57,000 jobs in June against analyst expectations of more than 100,000, a miss that reduced fears of further rate hikes and temporarily lifted both Bitcoin and Ethereum at the open.

ETFs Post Biggest Daily Inflow in Two Months

Before Wednesday's selloff, U.S. spot Bitcoin ETFs had finally caught a bid. According to Investing News Network, the products snapped a 10-day outflow streak by pulling in $221.7 million, their largest daily haul in two months, after enduring what the outlet called the worst month on record for these funds. June alone saw roughly $4.15 billion in net redemptions, a pace that Citi analysts cited when slashing their 12-month inflow forecast to zero.

Also this week, Strategy confirmed it sold 3,588 BTC in two separate tranches to raise approximately $216 million to cover dividend obligations on its Digital Credit securities. Executive Chairman Michael Saylor clarified the transactions, noting the firm still holds 843,775 BTC in primary reserves alongside $2.55 billion in cash. Separately, Ripple secured full MiCA compliance after receiving a Crypto Asset Service Provider license from Luxembourg's CSSF, legally clearing the company to passport its regulated crypto payment services across all 30 countries in the European Economic Area, while Binance entered the post-MiCA era without any clearance after withdrawing its Greek application.