Bitcoin Price Plummets Amid War Tensions and ETF Withdrawals

Bitcoin's price has been affected by the ongoing war between the US and Iran, with the largest cryptocurrency experiencing its lowest level in over six weeks. The recent escalation of tensions in the Middle East has led to a decline in investor confidence, resulting in outflows from exchange-traded funds (ETFs).

The value of Bitcoin dropped as much as 3.3% to $72,643 in Singapore on Thursday, its weakest since April 13. This decline was accompanied by a fall in Ether's price, which plummeted more than 4% to $1,965, its lowest in almost two months.

Market analysts attribute the decline in Bitcoin's price to a combination of factors. 'From what I can see this looks like a liquidation event driven by a confluence of geopolitical shock and over-leveraged long positioning,' said Rachael Lucas, an analyst at BTC Markets. Higher US yields and a firmer dollar have also tightened financial conditions.

Additionally, ETF withdrawals and reports of a large block sale of the iShares Bitcoin Trust have dented investor confidence, according to Sean McNulty, Asia-Pacific derivatives trading lead at FalconX. The recent events have led to significant liquidations, with about $873 million of bullish crypto bets unwound in the past 24 hours.