Bitcoin Retreats to $63,900 Amid Oil Rally and Geopolitical Concerns

Bitcoin's price retreated to approximately $63,900 on Monday as crude oil prices surged nearly 5% due to escalating tensions in the Middle East. Iran rejected direct negotiations with the US and outlined demands for fully reopening the Strait of Hormuz.

The increase in oil prices prompted investors to rotate into safe-haven instruments like the US dollar, applying downward pressure on both cryptocurrency and equity markets.

Strategy divested 1,690 BTC worth $108.6 million during the August 3-9 period, with an average sale price of $64,262 per token. The firm currently holds 840,447 BTC in its treasury, worth around $54.7 billion at current valuations.

Despite the price decline, institutional interest remained robust, with U.S. spot Bitcoin ETFs registering $865.3 million in net capital inflows throughout the previous week.