Investing.com -- Bitcoin dropped to its lowest level in nearly four months Thursday, weighed down by a combination of geopolitical anxiety, persistent institutional selling, and Strategy’s first Bitcoin sale in years.

Bitcoin fell to a near four-month low of $61,311 before trimming some of those losses, recovering to trade around $62,580.4 by 06:37 ET (10:37 GMT).

The selloff in the world’s largest cryptocurrency also dragged the crypto-related stocks lower. Shares in Michael Saylor’s Strategy, the largest corporate holder of Bitcoin, fell about 1.5% in premarket trading, while Coinbase slipped 1% and Circle lost 1.2%.

Crypto mining firms MARA Holdings and Riot Platforms also dipped about 4% each. Further, CleanSpark shed 5.7%, Hut 8 lost 5.5%, and Core Scientific dipped 4.5%.

The decline extended a broader retreat from risk assets as tensions in the U.S.-Iran conflict pushed investors toward safer ground.

Moreover, institutional investors continued to pull money from U.S. spot Bitcoin ETFs at a rapid clip. Wednesday alone saw roughly $396 million exit those funds, according to data from SoSoValue, following outflows of around $1 billion at the start of the week.

Over the past three weeks, net redemptions have totaled approximately $3.7 billion, a sustained exodus that has left few catalysts for a near-term rebound. Much of the rotation has favored artificial intelligence-related investments, which have attracted capital that might otherwise have flowed into digital assets.

Adding to the gloom was Strategy’s small Bitcoin sale this week — its first in nearly four years — prompting fresh scrutiny of a treasury strategy that depends heavily on prices continuing to climb.

Thursday’s selloff left Bitcoin trading roughly 50% below the record high it set last October.