Bitcoin to fall on weekly basis as geopolitical tensions spur outflows in BTC ETFs

Bitcoin ( BTC-USD ) is on track to fall 5.3% on a weekly basis, after it failed to maintain the growth momentum it had achieved last week. The world's largest digital currency pared some of its gains at the very start of the week, coinciding with a modest decline across U.S. equity index futures. “Bitcoin's price started the week around $64k, and dropped to $60-61k on the news of rising geopolitical tensions between Iran and Israel. Other financial assets such as U.S. stocks also sold off on these headlines, as it is common for geopolitical events to affect financial asset prices," said Cory Klippsten, CEO of Swan, a Bitcoin financial services firm. BTC then continued to largely fall, and even dropped below the $60K threshold on October 2 and 3, amid rising geopolitical tensions. "Although the week started strong with crypto assets gaining momentum from the news of U.S. rate cuts and China stimulus, the growing conflict in the Middle East prompted significant outflows from BTC ETFs and a decline in the prices of most crypto assets by Friday," said Nick Ruck, Independent Market Analyst. BTC ETFs have been seeing outflows for three consecutive days ending October 3. From the period between October 1 to October 3, the net outflows amounted to $361.2M, according to Farside Investors . However, Nikolaos Panigirtzoglou , strategist at J.P. Morgan, said rising geopolitical tensions and the U.S. election are reinforcing a “debasement trade” and favoring both gold ( XAUUSD:CUR ) and Bitcoin ( BTC-USD ). Recent geopolitical conflict has shifted attention to alternative asset classes or hedges, such as gold ( XAUUSD:CUR ) and Bitcoin ( BTC-USD ), Panigirtzoglou added. Notable News TeraWulf ( WULF ) sold its 25% stake in the Nautilus Cryptomine joint venture to its partner, Talen Energy, in a transaction valued at ~$92M. Riot Platforms ( RIOT ) produced 412 Bitcoins ( BTC-USD ) in the month of September, up 28% from 322 in August and 14% higher from last year. Bitcoin miner CleanSpark ( CLSK ) said on Thursday it mined 493 bitcoins in September, compared to 478 in August and 643 in September 2023. The Securities and Exchange Commission has appealed a court ruling in its case against Ripple Labs, under which the cryptocurrency company was fined $125M for improperly selling its XRP ( XRP-USD ) token. Robinhood Markets ( HOOD ) launched crypto transfers for its European customers, one of the most requested features in the region, the company said. Japan's Financial Services Agency is poised to commence a review of its rules for the cryptocurrency sector over the coming months, potentially paving the way for lower taxes on digital assets, as well as domestic funds investing in tokens. Bitcoin, Ether prices Bitcoin ( BTC-USD ) rose 2.9% to $62.3K at 3:16 pm on Friday, helped by stronger than expected employment data. Ether ( ETH-USD ) up 3.8% at $2.4K. More on cryptocurrency Why I Think This Is A Good Time To Go Long Bitcoin Despite Its 44% Run-Up China Gives Green Light, It's Bitcoin Season Bitcoin: Not Yet Ready To Launch The Breakout Rally (Rating Upgrade)