Stock Market Impact: Bitcoin fell 3% to $61,375.5 by 02:12 ET (06:12 GMT) as fresh missile and drone attacks by Iran on U.S. bases heightened geopolitical risk, prompting investors to shift into the dollar and other safe‑haven assets; broader risk‑driven markets, especially equities, also declined.
Listed Companies and Sectors: Strategy Inc (NASDAQ:MSTR), the largest corporate holder of Bitcoin, increased its Bitcoin holdings despite the price drop. Binance’s native token BNB fell 3%, reflecting sector‑wide weakness.
Investment Flows: Spot Bitcoin exchange‑traded fund (ETF) outflows cooled this week, recording $168 million in net withdrawals after more than $5 billion left ETFs over the preceding three weeks, indicating a slight easing of institutional selling pressure.
Interest Rates, Inflation, and Liquidity: Oil prices surged following the hostilities, raising concerns about an energy‑driven rise in inflation. U.S. consumer price index (CPI) data for May, due later in the day, were expected to provide further guidance on the trajectory of U.S. interest rates, with March and April CPI showing sharp energy‑related inflation spikes.
Fiscal or Monetary Policy: No direct fiscal or monetary policy actions were announced; however, the anticipation of May CPI results could influence Federal Reserve rate‑setting decisions.
Altcoin Performance: Major altcoins fell alongside Bitcoin: Ether dropped 3.3% to $1,630.78, XRP fell 5%, Solana fell 4.3%, Cardano fell 5.2%, Binance’s BNB fell 3%, Dogecoin fell 3.1%, and the meme token $TRUMP fell 2.3%.
