On June 4, 2026, the global financial market continues to feel the pressure from the unfolding conflict between the US and Iran. Asian stock markets are all in the red, oil prices are surging while the money flow is shifting towards defensive assets.

According to multiple market reports, geopolitical tensions have prompted investors to dial back their risk appetite, creating a wave of liquidations on speculative assets, including cryptocurrencies. In a short span, the crypto market saw hundreds of millions of USD in leveraged positions getting wiped out.
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Bitcoin briefly dropped to its lowest levels in months as investors feared the conflict might escalate in the Middle East. However, history shows that BTC tends to react negatively in the short term to geopolitical events but often bounces back after the market digests the news.

Aside from the war factor, Bitcoin is also under pressure from capital withdrawals from spot Bitcoin ETFs in the US. Some reports indicate that May saw significant outflows from ETFs, weakening the short-term bullish momentum of BTC
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