Geopolitical tensions following strikes on Iran pushed cryptocurrency markets lower, with Bitcoin falling from $68,000 to around $66,000 and Ethereum dropping below $2,000. Despite the volatility, Bitcoin ETFs recorded modest inflows while altcoins showed mixed performance.

Bitcoin ETFs reported their first positive weekly result since early January with $800 million in inflows, though this wasn’t enough to offset previous losses. Since the start of the year, Bitcoin ETFs have lost approximately $1.8 billion, a significant contrast to the $3 billion-plus monthly inflows seen during strong periods in 2024 and 2025.

Ethereum traded just above $1,900 after falling from prices over $2,000. Ethereum ETFs gained $80 million last week but have recorded negative monthly results since November.

Ethereum founder Vitalik Buterin expressed amazement on X that a solo developer theoretically implemented complex ETH upgrade goals in just two weeks using artificial intelligence. He noted that such AI-assisted “Vibe Coding” results were unimaginable six months ago, though he cautioned that bug fixing should remain a human responsibility. Buterin now expects faster technological development for Ethereum.

Among altcoins, KAVA surged 24% in 24 hours, making it the day’s biggest winner. The DeFi project, launched with Binance support in 2019, suffered a severe crash in 2023, and its recent price increase may be driven by speculation.

Zcash (ZEC) fell 6%, becoming the biggest loser among the top 30 cryptocurrencies, with a 13% weekly decline. Meanwhile, its main competitor Monero (XMR) gained 9% over the same period.

The crypto market sentiment barometer remains at “extreme fear,” reflecting the impact of Middle East bombings.

Geopolitical uncertainty drove record activity on prediction markets, with Polymarket attracting over $500 million in bets related to the Iran conflict. Derivatives exchange Hyperliquid also benefited from the situation, experiencing significantly higher trading volumes as traders turned to crypto platforms while traditional stock markets were closed over the weekend. Hyperliquid plans to enter the betting market as well.