Market Sentiment Remains Bullish Amid Rising Tensions
The Crypto Fear & Greed Index continues to stay in the “greed” zone, even as geopolitical tensions escalate between Israel and Iran. As of Sunday, the index posted a score of 60, indicating that market participants remain optimistic despite recent volatility.
On Thursday, the index reached 71, suggesting strong greed sentiment before reports emerged of Israeli airstrikes in Iran, followed by Iran’s missile retaliation.
Bitcoin Shows Resilience Despite Short-Term Pullback
While Bitcoin (BTC) briefly dipped 2.8% to $103,000, it quickly regained strength, trading around $105,670 at the time of writing. Notably, this decline came as Bitcoin was approaching its all-time high of $111,970, set on May 22.
Despite the market jitters, the ongoing tension hasn’t drastically shaken investor confidence. The fear & greed score remains above the neutral mark, highlighting continued market belief in long-term crypto growth.
Bitcoin ETFs Record $1.3B in Inflows Over Five Days
Supporting this sentiment is the fact that Bitcoin exchange-traded funds (ETFs) have now posted five consecutive days of net inflows, totaling over $1.3 billion, according to Farside Investors.
This sustained capital inflow into ETFs underscores institutional confidence in Bitcoin, even as uncertainty looms in traditional markets due to the Middle East conflict.
Experts Say Focus Should Shift to the U.S. Dollar Index
Market analyst Nic Puckrin emphasized that in the long run, Bitcoin’s performance depends more on the U.S. Dollar Index (DXY) than on global geopolitics.
“The DXY has just dropped below 100 for the first time in over three years,” he noted. “Historically, Bitcoin moves opposite to the dollar. This could support further upside if the trend continues.”
However, Puckrin warned that an escalation in the conflict—particularly if Iran closes the Strait of Hormuz, a critical oil shipping route—could negatively impact risk-on assets like Bitcoin in the short term.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.