Bitcoin Reacts to Geopolitical Tensions as Defense Stocks Surge AllinCrypto June 23, 2025
Over the past week, Bitcoin has declined by 4.7% amid growing geopolitical tensions in the Middle East involving the United States, Israel, and Iran.
The broader cryptocurrency market also saw a drop, with total market capitalization falling by 4.2% to $3.2 trillion.
Despite the overall market downturn, Bitcoin ETFs continue to see steady inflows, suggesting institutional interest. However, most of the losses have been concentrated in altcoins, which are bearing the brunt of current market pressure.
Defense Stocks Rally Amid Conflict, Bitcoin Maintains Steady Inflows
U.S. defense stocks surged in response to the recent strategic bombing of Iranian nuclear sites by the United States.
Companies such as General Dynamics, Lockheed Martin, Raytheon Technologies, and L3Harris Technologies experienced notable gains, with L3Harris seeing especially strong performance over the weekend.
L3Harris shares are up 8% over the past month, closely followed by Raytheon Technologies, which gained 8.66% in the same period. These movements reflect a broader shift of investor capital into defense-related equities amid rising global tensions.
Institutional demand for Bitcoin remains firm. Following a strong performance in May, Bitcoin ETFs have continued to draw capital throughout June. On June 18, Bitcoin saw inflows of $388 million, although this tapered off to $6.4 million by June 20 as the weekend approached.
The contrast between steady Bitcoin ETF inflows and broader crypto market volatility suggests that institutional investors are increasingly dominating the market, while many retail traders remain on the sidelines.
While Bitcoin has managed to hold relatively steady, many altcoins have underperformed. XRP fell to $2.00, marking a 7% drop over the past week. Hedera (HBAR) is down 12%, trading at $0.13, while Sui Network’s SUI token dropped 18%.
Still, a few altcoins have shown isolated strength. Hyperliquid’s HYPE token reached a new all-time high of $45 on June 17 before falling 22%. Meanwhile, the meme token AURA surged by over 11,500% before retracing 43%.
According to CoinShares, XRP led all non-Ethereum altcoin investments last week with $11 million in inflows, while SUI and Solana saw lower demand. This underscores a selective appetite among institutional players for higher-cap altcoins.
Crypto-Linked Stocks Benefit from Institutional Activity
The recent uptick in institutional activity can also be observed in traditional equity markets. Circle (CRCL), the issuer of USDC, and Coinbase (COIN) have seen strong gains. Circle’s stock rose by 20% in the past 24 hours, while Coinbase is up 4.43% for the week, among the top gainers in the sector.
Retail investors remain cautious amid choppy market conditions, but institutional money continues to flow into Bitcoin and select altcoins.
As geopolitical risks unfold and traditional markets respond, crypto remains deeply interconnected with global economic and political developments. Investors who stay engaged may be better positioned when market conditions improve.
The post Bitcoin Reacts to Geopolitical Tensions as Defense Stocks Surge first appeared on AllinCrypto.
