Bitcoin Price Faces Geopolitical Pressure as Institutional Demand Drives Prices Up
The Bitcoin price is being affected by geopolitical tensions and institutional money flowing into the market. On September 1, US forces launched strikes on Iranian targets, causing a drop in the BTC price from $79,000 to around $76,000. However, this sell-off was short-lived as institutional demand continued to drive prices up.
The total August inflows for Bitcoin ETFs reached about $2.8 billion, with nearly $1 billion coming in just last week. BlackRock's IBIT has pulled in roughly $1.2 billion so far this year. Despite the geopolitical uncertainty, demand hasn't cracked.
Looking at the chart, it seems that momentum has cooled down. The Ultimate Oscillator is 47.78, below 50, and the Stochastic readings are 32.08 and 37.69, both below the midpoint. This leaves short-term momentum vulnerable to another selloff if buyers cannot recover $78,403.