Bitcoin declined 1.7% to $107,534.98 in the past 24 hours as geopolitical tensions escalated following the International Atomic Energy Agency's ruling that Iran breached non-proliferation duties on June 12. This triggered risk-off sentiment, with investors shifting toward traditional safe havens like gold, which surged 1.26% to $3,385.80. Concurrently, the CoinDesk 20 Index fell 2.25%, reflecting broad crypto market weakness. However, bullish catalysts emerged from U.S. macro data showing core inflation holding at 2.8% in May, increasing expectations of Federal Reserve rate cuts. According to CME Group's FedWatch Tool, traders now price in two rate reductions starting September 2025, potentially boosting risk assets longer-term. Institutional demand remains robust, with CoinShares reporting $900 million in digital asset fund inflows this week, the highest single-week inflow since February. This dichotomy creates a complex trading landscape where near-term Middle East risks conflict with structural tailwinds like institutional adoption and monetary policy shifts. Boris Alergant, Head of Institutional Partnerships at Babylon, notes Bitcoin continues reacting to macro shocks as a risk asset but maintains a fundamentally optimistic outlook due to corporations emulating MicroStrategy's treasury strategy. The SEC's evolving stance also supports altcoins, with regulatory openness toward Solana ETFs potentially igniting an alt season. Brazil's B3 exchange will launch USD-settled ETH and SOL futures on June 16, adding institutional access points. These developments occur against a volatile equity backdrop where the S&P 500 dropped 0.27% and Nasdaq fell 0.50% on June 12, though crypto correlations weakened temporarily as Bitcoin decoupled during April's equity stability according to TheTie's analysis. Trading volumes reveal nuanced positioning. Bitcoin options open interest on Deribit hit $36.7 billion, with June 27 expiry calls concentrating at $140,000, indicating bullish medium-term bets. The put/call ratio of 0.60 shows moderate call bias despite geopolitical stress. Ethereum options reached a yearly high of $6.87 billion, with $614 million in calls targeting $3,000 strikes. Funding rates stabilized near 8-12% APR across Binance, Bybit, and Deribit, suggesting leveraged longs remain controlled. Solana faced technical rejection, failing to hold above its 200-day EMA and eyeing critical support at $149.68. Token unlocks pose headwinds, with $41.78 million worth of ZKsync tokens releasing on June 17. Crypto equities showed divergence: Coinbase fell 1.67% while Circle surged 10.66% on June 12. Spot Bitcoin ETFs recorded $164.6 million inflows, maintaining cumulative flows at $45.20 billion. These metrics signal traders are hedging short-term Middle East risks while positioning for H2 2025 rallies fueled by institutional participation and accommodative monetary policy.