Rising tensions in the Middle East and the upcoming release of U.S. inflation data are pressuring risk assets. Bitcoin continued its decline on Wednesday, falling below $61,000 during trading. Meanwhile, U.S.-listed spot Bitcoin ETFs have experienced consecutive net outflows, indicating that institutional risk appetite remains cautious.
ETF has experienced two consecutive days of net outflows.
CoinGlass data shows that U.S. spot Bitcoin ETFs experienced a net outflow of $77.44 million on Tuesday, following a net outflow of $91.37 million the previous day. The continued outflows sustain the recent weekly trend of capital withdrawal, indicating that some large investors are further reducing their exposure amid rising macroeconomic uncertainty.
The market is currently awaiting the U.S. May CPI data. If inflation exceeds expectations, it could reinforce expectations that the Fed will keep interest rates high for longer. Persistently elevated interest rates typically suppress market liquidity and reduce the appeal of highly volatile assets.
The Middle East conflict is suppressing risk appetite.
The report stated that after an Apache helicopter was shot down in the Strait of Hormuz, the United States launched what it called a "self-defense strike" against Iran. Subsequently, Iran's Islamic Revolutionary Guard Corps stated that it had targeted Jordanian air bases hosting U.S. troops, as well as parts of Kuwait and Bahrain, and warned that the situation could escalate further if the U.S. continues its actions.
Energy prices therefore face upward pressure, making markets more sensitive to a resurgence in inflation. If oil prices continue to push prices higher, expectations for the Fed’s interest rate cuts may be pushed back again.
The short-term trend remains weak.
Looking at the 4-hour chart referenced in the text, Bitcoin remains in a clearly weak range, trading below key moving averages. The area around $73,000, previously near the uptrend line, has now turned into resistance, indicating that the medium-term upward structure has been broken.
The Relative Strength Index (RSI) is approaching 38, indicating that the market is nearing oversold conditions, suggesting that the downward momentum may be slowing; however, no clear reversal signal has yet emerged. The MACD remains in negative territory, and although bearish momentum has weakened, this appears more like short-term consolidation rather than a rapid recovery.
If buying pressure rebounds, $64,000 is the first level to reclaim; the $72,000 area above remains a strong resistance. The article suggests that, until selling pressure shows clear signs of easing, Bitcoin still faces further downside risk.