Bitcoin investment products in the United States faced their heaviest capital flight in three weeks, with $171 million exiting ETFs on Thursday as geopolitical tensions shook cryptocurrency markets. The sudden exodus reflects growing investor anxiety that another weekend could bring an escalation in the standoff between the US, Israel, and Iran, with traders seeking safer havens.

The outflows mark a sharp reversal from recent weeks when Bitcoin ETFs had attracted steady institutional inflows. Analysts suggest that cryptocurrency's correlation with traditional risk assets remains strong, as Bitcoin dropped 2.3% alongside broader market declines. With the Middle East situation fluid, traders brace for additional volatility, potentially setting the stage for a challenging weekend for digital assets.