Analysis: BTC bucked the trend and strengthened amidst the turmoil in the Middle East; institutional fund inflows were the main reason for its support.

Bitcoin's performance remains strong despite the escalating conflict between the US and Israel and Iran, and the market's repricing of Middle East geopolitical risks and the delayed expectations of a near-term interest rate cut by the Federal Reserve. Analysts believe that after several weeks of consolidation, institutional funds have redeployed, providing significant support for the Bitcoin rebound. Inflows into spot ETFs have also underpinned the price recovery. Furthermore, on-chain and derivatives data also indicate a recovery in risk appetite, with Bitcoin perpetual contract open interest recording its largest single-day increase since July 2025, indicating a significant expansion in leverage. However, there may be a time lag between ETF share trading and actual Bitcoin spot purchases, and the settlement and hedging mechanisms of institutional products may weaken the immediate transmission effect of short-term prices. (The Block)