Risk-Off Sentiment Grips Global Markets Amid Ongoing Conflict

Market participants are closely monitoring the ongoing conflict in the Middle East and its impact on global markets. The latest data indicates a significant shift in risk appetite, with broad risk assets experiencing a renewed bout of selling.

Bitcoin, which initially showed resilience during earlier periods of turmoil, has struggled to maintain momentum as traders reassess their exposure to traditional assets and crypto-linked vehicles alike. Analysts warn that the current geopolitical climate is compressing demand depth and making it more expensive or harder to source liquidity.

The recent outflows from spot Bitcoin ETFs have totaled around $6.3 billion, signaling a fragile recovery in demand. Glassnode's on-chain signals also suggest that even modest realizations can ripple through order books, damping price durability and delaying a more decisive rebound.