Bitcoin has fallen to $74,017, its lowest level in over five weeks, as investor sentiment is dampened by outflows from US exchange-traded funds (ETFs) and geopolitical tensions surrounding the US-Iran conflict. The cryptocurrency dropped by 1.5% in Singapore, while Ether also saw a decline of more than 2%. Concerns that the ongoing conflict could exacerbate inflation and prompt interest rate hikes are unsettling investors, despite stock markets reaching record highs due to optimism surrounding artificial intelligence. In May, US spot-Bitcoin ETFs reported net outflows totaling around $1.5 billion. Sean McNulty, Asia-Pacific derivatives trading lead at FalconX, indicated that Bitcoin's recent weakness appears to be influenced more by broader economic factors than by issues specific to the cryptocurrency market. Financial conditions have tightened due to higher US yields and a stronger dollar, coupled with ETF withdrawals and significant sales from the iShares Bitcoin Trust, which is the largest Bitcoin ETF. IG Markets analyst Tony Sycamore mentioned that traders are adopting a cautious approach, especially as equity markets show signs of fatigue, leading to adjustments in leveraged positions.