Bitcoin Price Rebounds on Institutional Demand, But Iran Tensions Weigh

Bitcoin's price rebounded on Tuesday to reclaim the $64,000 mark after a mild correction in the previous session. The Crypto King received some support from improving institutional demand, but its upside remains limited due to uncertainty surrounding US-Iran peace talks and recovering crude oil prices.

The ongoing tensions between the two countries have heightened concerns that rising energy prices could reignite inflationary pressures and push the Federal Reserve toward a more hawkish stance. According to the CME FedWatch Tool, market participants are currently pricing in a 64.7% probability of a Fed rate hike in September.

Despite these challenges, institutional demand showed early signs of a comeback, with spot BTC ETFs recording an inflow of $170.09 million on Monday after net outflows of $61.53 million last week.