Crypto Markets Reel from Persian Gulf Tensions and DeFi Fallout

The crypto market saw a significant downturn on Thursday, as traders booked profits following a week-long rally that had pushed Bitcoin to near $80K. Geopolitical tensions in the Persian Gulf, particularly the ongoing naval blockade and recent incidents involving Iran, weighed heavily on investor sentiment.

Bitcoin's price slipped 1.1% over the past 24 hours, although it remains up 4.5% for the week and 9.9% for the month. Ether also declined 2.8%, turning its seven-day chart marginally negative.

In contrast to the broader market, spot ETF flows continue to show constructive trends. U.S. spot Bitcoin ETFs took in $335 million on Tuesday, marking the seventh consecutive session of positive flows. The cumulative inflows across all 11 spot Bitcoin products are now back in positive territory for the year, with a total asset under management (AUM) exceeding $96.5 billion.