Bitcoin Holds Above $63,000 as ETF Inflows Offset Geopolitical Jitters

Bitcoin Steadies Amid Risk-Off Mood

Bitcoin traded 0.4% higher at $63,342.27 by 03:22 ET (07:22 GMT) on Tuesday. The world’s largest cryptocurrency had climbed to as high as $64,600 in the previous 24 hours before giving back some gains.

The move came as broader risk sentiment weakened. Cryptocurrencies, which have increasingly traded in line with technology stocks during periods of shifting risk appetite, came under pressure as investors reduced exposure to speculative assets.

Concerns over stretched valuations in artificial intelligence-related stocks weighed on technology shares in Asia. South Korea’s benchmark KOSPI fell despite a strong earnings outlook from Samsung Electronics, triggering a selloff in chipmakers. U.S. stock futures also pointed lower, underscoring the softer tone across risk assets.

Geopolitical developments added to the cautious backdrop. Axios reported on Tuesday that Iran’s military fired at least two missiles at commercial ships transiting the Strait of Hormuz on Monday night, citing two U.S. officials. The reported action ended a week-long halt in attacks under a U.S.-Iran understanding.

ETF Inflows Point to Stabilizing Institutional Demand

Despite the risk-off environment, institutional interest in bitcoin showed signs of improvement. U.S.-listed spot bitcoin ETFs recorded net inflows of $265.7 million on Monday, according to data compiled by SoSoValue. This followed net inflows of $221.7 million on July 2.

These recent inflows marked a sharp reversal from late June, when spot bitcoin funds saw persistent outflows. During that period, investors withdrew nearly $2.4 billion over several sessions amid heightened macroeconomic uncertainty and profit-taking.

Market participants are also monitoring upcoming U.S. economic data and communications from the Federal Reserve for indications on the interest-rate outlook, a key factor for risk assets including cryptocurrencies.

Altcoins Trade Mixed in Tight Ranges

Altcoins mostly moved within narrow bands and showed divergent performance. Ethereum, the second-largest cryptocurrency by market capitalization, fell 2% to $1,779.18. XRP, the third-largest crypto, declined 1.1% to $1.13.

Among other major tokens, Solana rose 1%, while Cardano slipped nearly 2%. In the meme-token segment, Dogecoin fell 2%, reflecting generally cautious positioning across the crypto complex.

FAQ

What was bitcoin’s latest reported price?
Bitcoin traded at $63,342.27 by 03:22 ET (07:22 GMT), up 0.4% on the session.

How much money flowed into U.S.-listed spot bitcoin ETFs?
U.S.-listed spot bitcoin ETFs saw net inflows of $265.7 million on Monday, following $221.7 million in inflows on July 2.

What geopolitical development influenced market sentiment?
Axios reported that Iran’s military fired at least two missiles at commercial ships in the Strait of Hormuz on Monday night, according to two U.S. officials.

How did major altcoins perform?
Ethereum fell 2% to $1,779.18, XRP dropped 1.1% to $1.13, Solana gained 1%, Cardano declined nearly 2%, and Dogecoin slipped 2%.