The crypto market is showing signs of instability due to ongoing US-Iran ceasefire woes. In response to recent retaliatory strikes, investors have been dumping their crypto ETFs.
The situation has pushed crude oil prices lower, which could lead to higher inflation expectations and a potential increase in interest rates by the Federal Reserve. However, if the war were to resume, market volatility would likely surge, driving investors away from risky assets like stocks and crypto.
Data shows that spot Bitcoin and Ethereum ETFs have seen significant outflows, with spot Bitcoin ETFs losing over $445 million in assets on Friday alone. This is part of a larger trend, with these funds suffering redemptions worth over $4.1 billion this month.