Bitcoin 'Holds On' Despite Additional Iranian Airstrikes?...Institutional Funds See $1.47 Billion Exodus

▲ Iran, U.S., Bitcoin (BTC)/ChatGPT Generated Image

Despite additional U.S. airstrikes on Iran, Bitcoin (BTC) held near $77,000, but a $1.47 billion fund outflow coupled with the $79,000 resistance level has put its short-term direction back to the test.

According to cryptocurrency media outlet Coingape on May 26 (local time), Bitcoin traded near $77,000 amidst renewed military tensions between the U.S. and Iran. Ethereum (ETH) maintained the $2,000 level, and XRP remained around $1.35. Major cryptocurrencies such as Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) also showed an overall sideways trend after the additional U.S. airstrikes.

The U.S. carried out additional airstrikes in southern Iran on Monday. The targets were vessels believed to be involved in missile launch facilities and mine-laying, and U.S. Central Command stated that the operation was a self-defense measure to protect U.S. forces. Iran's Islamic Revolutionary Guard Corps (IRGC) claimed to have shot down a U.S. drone flying in Iranian airspace, and Iranian state media reported firing at fighter jets and another drone.

Despite military tensions, Bitcoin and Ethereum started at higher levels than on Monday. Coingape assessed that cryptocurrency price volatility related to Middle East news was more limited than in the past. However, market confidence remains fragile, and investment sentiment could quickly be shaken again if additional airstrikes or retaliation occur amidst ongoing peace talks in Qatar.

Fund flows indicate bearish pressure. According to CoinShares data, digital asset investment products saw an outflow of $1.47 billion last week. Bitcoin product outflows amounted to $1.315 billion, marking the largest weekly outflow since 2026, and Ethereum funds also experienced an outflow of $223 million. Coingape explained that the risk-off sentiment triggered by Iran-related tensions spread to the U.S., Switzerland, Canada, and Hong Kong.

Technically, Bitcoin traded at $77,686 on the 4-hour chart, up 0.74%. After recent selling, it recovered above $77,500, and analysis suggests that if buying pressure holds this range, a retest of the $79,000 resistance level is possible. A clear breakthrough of $79,000 could open up room for an ascent to $81,000. The Relative Strength Index (RSI) was around 57.80, indicating improved buying pressure, and the CMF indicator rose to 0.42, suggesting strong fund inflows during the recent rebound.

Conversely, if Bitcoin loses $77,500 again, selling pressure could target $75,000. If the defense of $75,000 fails, the next downside target is set at $73,500. Coingape analyzed that Bitcoin needs to reclaim $79,000 to strengthen its short-term bullish trend.

*Disclaimer: This article is for investment reference only and does not take responsibility for investment losses based on it. The content should be interpreted for informational purposes only.*