The drop, which brings Bitcoin near $103,000, stems from a potent mix of geopolitical tension, institutional selling, and bearish market signals.

Geopolitical Shock Sparks Risk-Off Sentiment

The primary trigger came on June 17 at 16:40 UTC, when an Iranian military commander warned of potential attacks on Israel. This escalation in Middle East tensions sent shockwaves through financial markets, driving a 3% spike in Brent crude oil and reviving fears of inflation and stagflation.

Historically, BTC has reacted negatively to such conflict: data from CoinMarketCap shows average 10% drops during Middle East flare-ups, as traders rotate out of risk assets.

ETF Outflows Compound Selling Pressure

Another major blow came from the ETF front. Bitcoin investment products saw $430 million in outflows, marking the end of a 31-day inflow streak. BlackRock’s iShares Bitcoin Trust (IBIT) recorded its largest single-day outflow since launch, signaling short-term profit-taking and cooling institutional momentum.

Derivatives Market Turns Bearish

The sentiment shift is also reflected in crypto derivatives:

The 1-week options skew flipped to +10.1%, indicating a surge in downside hedging
Over $600 million in long positions were liquidated as Bitcoin dipped into the $103,000–$104,000 zone.

Technically, the market is weakening:

The MACD histogram hit -307, the lowest since May 30’s plunge to $100,372
Fibonacci 23.6% support at $109,248 failed; next major level is $107,564
RSI (14) has dropped to 53.55, diverging from the long-term RSI (365d) of 57.07, a sign of cooling momentum

The post Here Is Why the Price of Bitcoin Is Going Down Today appeared first on Coindoo.

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Filed under: Bitcoin - @ June 17, 2025 5:17 pm