Bitcoin Plummets to Four-Month Low Amid Middle East Tensions and ETF Outflows

Bitcoin slid to a near four-month low of $61,311.0 on Thursday, amid heightened tensions in the Middle East and continued institutional outflows from major exchange-traded funds (ETFs). The world's largest cryptocurrency recouped some losses to trade at $63,811.4 by 09:57 ET (13:57 GMT), but the decline marked a significant setback for investors.

The sustained capital outflows from spot ETFs added to investor anxiety, with data showing about $396 million in outflows on Wednesday, following a roughly $1.02 billion outflow at the beginning of the week. This week's outflows came after institutional investors pulled out a combined $3.7 billion from Bitcoin ETFs over the last three weeks.

Analysts remain bullish on Bitcoin's long-term prospects despite recent losses. Standard Chartered's Geoffrey Kendrick is standing by his forecast for Bitcoin to reach $100,000 by year-end, pointing to resilient long-term demand. However, he warned that additional selling pressure could occur if Bitcoin drops below $60,000.