Cryptocurrencies lag stocks rally as etf demand cools

Major cryptocurrencies declined over the past week while the S&P 500 extended its longest weekly winning streak since 2023. Bitcoin and ether fell nearly 3 percent each amid softer inflows into spot bitcoin exchange-traded funds. Smaller tokens such as Hyperliquid's HYPE provided the only notable gains.

The S&P 500 recorded its ninth consecutive weekly advance, the longest such streak since 2023. Brent crude settled near 92 dollars a barrel on hopes for an extension of the U.S.-Iran ceasefire. President Donald Trump indicated he was prepared to make a final determination on a preliminary agreement but maintained demands that Iran abandon its nuclear program and open the Strait of Hormuz.

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Illustration of Bitcoin's price drop below $73,000 due to geopolitical tensions and ETF outflows.
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Bitcoin falls below $73,000 amid US-Iran tensions and ETF outflows

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Bitcoin dropped below $73,000 on Thursday, reaching a six-week low, as renewed US military strikes on Iran escalated geopolitical risks and triggered heavy selling across crypto markets. Spot Bitcoin ETFs saw sharp outflows, with BlackRock's IBIT alone shedding $528 million in a single day. The move coincided with nearly $1 billion in liquidations across derivatives platforms.

Bitcoin held around $68,000 on Tuesday, March 3, showing resilience after Monday's rally, as global stocks tumbled on renewed Middle East tensions. The Nasdaq and S&P 500 fell over 2%, gold dropped sharply, and the U.S. dollar strengthened amid risk-off moves.

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Bitcoin and Ethereum extended losses as more than $400 million in leveraged crypto positions were liquidated in a single day. Macroeconomic concerns and ETF outflows weighed on investor sentiment.

Bitcoin's price has fallen below $68,000 as escalating US-Iran conflicts drive volatility in cryptocurrency markets. The drop follows a US-Israel attack on Iran and recent statements from leaders on both sides, compounded by weak US jobs data. Other major coins like Ethereum and XRP have also declined.

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Bitcoin climbed as odds increased for a U.S.-Iran peace deal. Iranian negotiators arrived in Doha for discussions focused on the Strait of Hormuz and enriched uranium.

Bitcoin surged above $80,000 for the first time since January during early Asian trading on May 4, 2026, reaching highs around $80,600. The cryptocurrency later pulled back to around $79,000 following reports of an Iranian missile strike on a U.S. warship, which the U.S. denied. Geopolitical risks near the Strait of Hormuz overshadowed strong ETF inflows supporting the rally.

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Digital asset investment products recorded $1.47 billion in outflows last week. Bitcoin funds drove most of the redemptions amid higher interest rate expectations.

 

 

 

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