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Crypto markets have demonstrated remarkable resilience with $1.9 billion in inflows last week, maintaining a nine-week streak of positive momentum despite escalating geopolitical tensions in the Middle East.
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Bitcoin led inflows with $1.3 billion, while Ethereum achieved its largest weekly gain since February, attracting $583 million, signaling strong investor confidence in major digital assets.
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According to CoinShares, investors are increasingly viewing cryptocurrencies as a hedge against global instability, with the United States dominating inflows amid inflation fears and rising oil prices.
Crypto inflows hit $1.9 billion amid Middle East tensions, led by Bitcoin and Ethereum, as investors seek digital assets to hedge against inflation and geopolitical risks.
Crypto Inflows Reach $1.9 Billion Amid Middle East Geopolitical Risks
Despite heightened geopolitical tensions in the Middle East, including Israel’s retaliatory strikes and North Korea’s military posturing, crypto markets have shown unexpected strength. The latest CoinShares report highlights a significant $1.9 billion inflow last week, marking the ninth consecutive week of positive capital movement into digital assets and pushing the year-to-date total to $13.2 billion.
James Butterfill, head of research at CoinShares, noted, “Digital assets defy geopolitical tensions with further inflows of $1.9 billion,” underscoring the growing perception of cryptocurrencies as resilient investment vehicles during times of uncertainty.
Earlier in the week, the market experienced volatility with a $1 billion loss following Israel’s airstrikes on Iranian targets, during which gold outperformed Bitcoin as a safe-haven asset. However, the broader crypto market quickly recovered, with Bitcoin attracting $1.3 billion in inflows after a brief period of outflows, indicating investors are capitalizing on price dips caused by geopolitical unrest.
Ethereum also showed robust performance, drawing $583 million—the largest weekly inflow since February—bringing its total inflows to $2 billion, equivalent to 14% of its assets under management. This surge reflects renewed institutional interest and confidence in Ethereum’s long-term value proposition.
The inflow momentum extended beyond Bitcoin and Ethereum, with altcoins like XRP reversing a three-week outflow trend by attracting $11.8 million, and Sui securing $3.5 million in fresh capital. Regionally, the United States led with $1.9 billion in inflows, followed by Germany, Switzerland, and Canada. Conversely, Hong Kong and Brazil recorded outflows, reflecting localized market uncertainties.
This sustained inflow streak highlights a growing investor appetite for digital assets as part of diversified portfolios, especially amid ongoing geopolitical and macroeconomic challenges.
Bitcoin and Ethereum Dominate Inflows Despite Inflation and Oil Price Pressures
The continuous inflows into Bitcoin and Ethereum amidst global tensions and inflation concerns illustrate the evolving role of cryptocurrencies as alternative investment hedges. Institutional investors appear undeterred by the potential economic ramifications of rising oil prices, which have been influenced by conflict in the Middle East.
JPMorgan analysts have warned that a full-scale Israeli attack on Iran could push crude oil prices to $120 per barrel, potentially driving US Consumer Price Index (CPI) inflation to 5%. Currently, oil prices hover in the mid-$70 range, but heightened conflict risks could exacerbate inflationary pressures, complicating the Federal Reserve’s monetary policy outlook.
JP Morgan said an attack on Iran could spike oil prices to $120, driving US CPI to 5%
Crude is sitting in the mid-70’s right now
— Cheddar Flow (@CheddarFlow) June 13, 2025
Such inflationary pressures threaten the market consensus that the Federal Reserve might begin cutting interest rates by September. Rate hikes typically dampen risk asset valuations, including cryptocurrencies, by tightening liquidity and increasing borrowing costs.
Despite these headwinds, the renewed inflows suggest that many investors are positioning cryptocurrencies as a long-term hedge against both inflation and geopolitical instability. The sustained nine-week inflow streak and $13.2 billion year-to-date total underscore crypto’s emerging role alongside traditional hard assets like gold during periods of global uncertainty.
Conclusion
The latest data from CoinShares confirms that crypto markets are demonstrating notable resilience amid complex geopolitical and macroeconomic challenges. Bitcoin and Ethereum continue to lead inflows, reflecting strong investor confidence in their potential as hedges against inflation and geopolitical risk. While volatility remains a factor, the persistent inflow trend signals growing institutional adoption and a shift in how digital assets are integrated into diversified investment strategies. As global tensions persist, monitoring these inflow patterns will be crucial for understanding crypto’s evolving role in the broader financial ecosystem.
