With ETF buy-side demand just starting to warm up, the Hormuz blast instantly cooled everything—this geopolitical risk couldn’t have come at a worse time.

On Monday, Bitcoin fell below $63,000. Heightened geopolitical tensions—especially the situation in the Strait of Hormuz—have dampened risk appetite, offsetting institutional buy pressure from ETFs. Although last week’s spot Bitcoin ETF saw net inflows of nearly $200 million, indicating a rebound in institutional demand, uncertainty in the strait has still capped the rally. CENTCOM said its strikes on Iran worsened market sentiment; Iran said explosions occurred and announced a blockade of the strait. At current prices around $63,055, it has become harder to break through the $64,000 resistance level.