The cryptocurrency market is showing signs of weakness as geopolitical tensions between Russia and Ukraine escalate, driving investors toward safer assets. Bitcoin spot ETFs experienced their first weekly outflow since mid-April, while several altcoins face potential selling pressure from upcoming token unlocks.
Market Sentiment Shifts as Russia-Ukraine Conflict Intensifies
The cryptocurrency market started the week on shaky ground as risk appetite diminished following Ukraine’s largest long-range attack of the war against Russia. On Sunday, Ukraine launched a coordinated drone strike called “Spider’s Web,” targeting four Russian airbases and reportedly damaging 40 warplanes .
President Zelensky claimed the operation struck 34% of Russia’s strategic cruise missile carriers, while Russia condemned the attacks as a “terrorist act.” Despite peace talks scheduled to resume in Istanbul, prospects for meaningful resolution remain slim .
This escalation has prompted investors to seek refuge in traditional safe-haven assets like Gold, creating a risk-off environment that typically doesn’t favor cryptocurrencies and other high-risk investments.
Institutional Bitcoin Demand Shows Signs of Cooling
After a remarkable six-week streak of inflows, Bitcoin spot ETFs recorded $616.22 million in net withdrawals on May 30, 2025 . For the entire week, Bitcoin ETFs saw outflows totaling $157.40 million, marking their first negative flow week since mid-April .
BlackRock’s IBIT led the exodus with $430.82 million in outflows, ending its impressive 31-day inflow streak . Despite this reversal, IBIT still maintains approximately $69.21 billion in net assets . Other major ETF providers also experienced significant withdrawals:
• Fidelity’s FBTC: $113.71 million outflow
• ARK & 21Shares’ ARKB: $120.14 million outflow
• Bitwise’s BITB: $55.93 million outflow
While these outflows are relatively modest compared to February’s volatility, they could signal a shift in institutional sentiment. If this trend intensifies, Bitcoin’s price might face additional downward pressure in the coming days.
Bitcoin Price Action and Technical Outlook
Bitcoin is currently trading at $104,755.49, up 0.24% despite the ETF outflows . The cryptocurrency recently closed below the daily support level of $106,406 and has been struggling to reclaim this threshold.
Technical indicators suggest potential weakness ahead:
• The Relative Strength Index (RSI) is pointing downward toward its neutral level of 50
• The Moving Average Convergence Divergence (MACD) showed a bearish crossover last week
If Bitcoin continues to face resistance around $106,406, it could extend its decline toward the psychologically important $100,000 level. However, a close above this resistance could reignite momentum toward its all-time high of $111,980.
Ethereum ETFs Buck the Trend
In contrast to Bitcoin’s ETF outflows, Ethereum spot ETFs recorded a weekly inflow of $285.84 million last week—their highest since mid-February . This marks three consecutive weeks of inflows since mid-May, potentially supporting Ethereum’s price in the near term if the trend continues.
Altcoin Watch: Major Token Unlocks Ahead
Several altcoins face significant token unlocks this week, which could increase selling pressure. Three cryptocurrencies will experience cliff unlocks (immediate releases) worth over $5 million each:
• Ethena (ENA): 3.72% of circulating supply
• Taiko (TAIKO): 71.23% of circulating supply
• Neon (NEON): 6.48% of circulating supply
Additionally, major cryptocurrencies including Solana, Worldcoin, Dogecoin, and Avalanche will undergo linear token unlocks exceeding $7 million daily. While these scheduled releases are typically anticipated by traders, they may still generate negative sentiment and price pressure.
Institutional Activity Beyond ETFs
Despite the ETF outflows, some institutional interest remains. Japanese investment firm Metaplanet announced the purchase of an additional 1,088 BTC, bringing its total holdings to 8,888 BTC. Meanwhile, Meta (formerly Facebook) shareholders voted against adding Bitcoin to the company’s balance sheet.
The current market dynamics highlight the delicate balance between institutional adoption and external factors like geopolitical tensions that continue to influence cryptocurrency prices.
