Bitcoin Holds Firm Above $65,400 as Institutional Demand Continues

Bitcoin (BTC) is holding firm above $65,400 on Friday after modestly recovering from its recent lows. This comes as institutional investors continue to show interest in the cryptocurrency, with US-listed spot Bitcoin Exchange Traded Funds (ETFs) recording their third consecutive week of inflows.

The latest data from SoSoValue shows that these ETFs have attracted a total of $273.87 million through Thursday, with Friday potentially bringing more positive flows. This trend suggests that institutional investors are gradually returning to the market, although the magnitude of these inflows remains modest compared to previous periods of heavy outflows.

However, higher oil prices driven by the escalating US-Iran conflict and President Donald Trump's new tariffs have revived inflation concerns, limiting Bitcoin's upside. The West Texas Intermediate (WTI) crude oil price has reached a fresh high of $92.5 per barrel since June 11, exacerbating fears about energy supply disruptions.

The sharp surge in oil prices has reignited inflation concerns, which are weighing on risk sentiment and potentially influencing the Federal Reserve's interest rate decisions. The CME FedWatch Tool chart shows that the probability of a July rate hike has risen to 34.21%, up from 16.03% at the start of this week.