1 hour ago
21
Key Highlights
- BTC declined 1.8% to reach $62,853 following escalating Middle East tensions
- Cryptocurrency markets continued their weekend slide, hovering near 12-month lows
- Spot Bitcoin ETFs reversed eight consecutive weeks of outflows with $197.4M in new capital
- BlackRock’s iShares Bitcoin Trust dominated with $291.9M in weekly contributions
- Market observers maintain a cautious outlook, with potential for additional declines through October
Bitcoin experienced significant downward pressure on Monday as escalating tensions between Washington and Tehran drove capital away from risk-oriented investments including digital assets.
The leading cryptocurrency by market capitalization shed 1.8% to reach $62,853.4 during early Monday trading hours. This valuation represents approximately 50% below Bitcoin’s peak achieved in October.
Bitcoin (BTC) PriceWashington and Tehran engaged in military confrontations throughout the weekend, with both nations providing contradictory reports regarding the status of the Strait of Hormuz. American officials maintained the critical shipping lane remained operational, while Iranian authorities claimed it was predominantly blocked.
Crude oil values surged following these developments, intensifying concerns about energy-related inflation and potential implications for monetary policy. Elevated borrowing costs typically diminish appetite for non-yield-generating assets such as Bitcoin.
Market analyst Ted Pillows highlighted declining spot market demand as a critical obstacle for Bitcoin’s recovery. He suggested that without renewed participation from spot market buyers, Bitcoin will find it challenging to surpass the $65,000 threshold — a resistance level that has repeatedly rejected price advances.
According to SoSoValue data, Bitcoin exchange-traded funds had experienced eight consecutive weeks of net capital withdrawals prior to the previous week. Institutional interest in cryptocurrency assets had been steadily waning.
Bitcoin ETFs Break Extended Outflow Pattern
American-listed spot Bitcoin exchange-traded funds accumulated $197.4 million in net contributions during the week concluding Friday, halting the prolonged withdrawal trend. BlackRock’s iShares Bitcoin Trust ETF accounted for the majority of this activity, attracting $291.9 million.
Source: SoSoValueWithdrawals from Grayscale’s product, Fidelity’s Wise Origin Bitcoin Fund, and the ARK 21 Shares Bitcoin ETF partially counterbalanced these contributions.
Monochrome Asset Management CEO Jeff Yew suggested the inflows might indicate early strategic positioning in anticipation of the CLARITY Act, comprehensive cryptocurrency legislation expected in August. He characterized this movement as potentially signaling long-term investors preparing for enhanced regulatory transparency.
Mixed Perspectives on Market Recovery
10x Research CEO Markus Thielen noted that ongoing ETF and stablecoin withdrawals, combined with historical seasonal trends during August and September, continue to present obstacles. He identified a recurring pattern where Bitcoin typically demonstrates stronger performance during the first half of each month before momentum dissipates.
The $197.4 million weekly accumulation appears modest when compared against the $8.26 billion withdrawn from Bitcoin ETFs since May 11.
Real Vision analyst Jamie Coutts indicated last week that Bitcoin may be progressing through the advanced phases of a bear cycle, with preliminary indicators suggesting diminishing selling momentum.
Russell Thompson, Chief Investment Officer at Hilbert Capital, stated that Bitcoin remains within a declining cycle and could establish a bottom near October.
Ether-focused ETFs similarly concluded their eight-week outflow sequence, registering $84.42 million in net contributions last week, predominantly driven by BlackRock and Fidelity offerings.
The post Bitcoin (BTC) Slides to $62,800 as Middle East Conflict Triggers Crypto Selloff appeared first on Blockonomi.
English (US) ·