Cryptocurrency Shakes as Strait of Hormuz Blocked! Institutions Flee En Masse

▲ Iran, Strait of Hormuz, Bitcoin (BTC), XRP/AI generated image ©

Bitcoin (BTC), Ethereum (ETH), and XRP (Ripple) continue to show weakness amidst institutional fund outflows and geopolitical risk shocks. As tensions between the US and Iran prolong, global inflation concerns are resurfacing, leading to increased selling pressure across the cryptocurrency market.

According to investment media FXStreet on June 1 (local time), Bitcoin continues its bearish trend above the $73,000 mark after three consecutive weeks of decline. Ethereum is wavering near the psychological support level of $2,000, and XRP also showed a precarious trend around its key support zone at the $1.33 level during intraday trading. The media analyzed that institutional fund outflows are accelerating due to delays in truce extension negotiations between the US and Iran.

As US President Donald Trump continues negotiations for enriched uranium transfer, the 60-day extension of the US-Iran truce is delayed, maintaining the blockade of the Strait of Hormuz. Consequently, international oil prices remain above $90, and concerns about disruptions in oil tanker operations are compounding, leading to a renewed expansion of inflation risk. The media diagnosed that institutional investors are rebalancing their holdings as Bitcoin loses its narrative as a traditional inflation hedge asset.

According to SoSoValue data, Bitcoin spot ETFs saw a net outflow of $1.42 billion last week. This marks three consecutive weeks of outflows exceeding $1 billion, bringing the cumulative monthly net outflow for the year to $2.43 billion. The media analyzed that institutional funds are moving to AI-related stocks and South Korean KOSPI semiconductor stocks. In particular, it predicted that if the outflow trend from Bitcoin spot ETFs does not subside, further declines in the cryptocurrency market this week cannot be ruled out.

Technical trends also remain predominantly bearish. Bitcoin is trading below its 50-day, 100-day, and 200-day Exponential Moving Averages (EMA) of $76,124, $76,542, and $81,038, respectively, indicating downward pressure. The daily Relative Strength Index (RSI) remained at 37, maintaining a bearish trend, and the Moving Average Convergence Divergence (MACD) also continued its negative trend below the baseline. The media analyzed that if Bitcoin falls below the trendline support zone of $71,547, the correction phase could further expand.

For Ethereum, defending the $2,000 level has also emerged as a key variable. ETH is trading below its 50-day, 100-day, and 200-day EMAs of $2,173, $2,265, and $2,460, facing selling pressure with every rebound. The RSI has fallen to 33, just before the oversold zone, and the MACD also maintained a bearish trend. The media predicted that if ETH closes daily below last week's low of $1,967, the possibility of testing support levels at $1,841 and $1,675 could open up.

XRP has also not escaped the pressure of declining moving averages. XRP is currently trading below its 50-day, 100-day, and 200-day EMAs of $1.3834, $1.4547, and $1.6513, respectively, and its RSI is at 42, indicating weak demand. The MACD also remains in the negative zone below the baseline, showing continued downward momentum. The media analyzed that if XRP falls below the key support zone of $1.2700-$1.2543, there could be a possibility of retesting the February 6 low of $1.1179.

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