Bitcoin Price Rises as ETF Inflows and US-Iran Diplomacy Ease Market Fears

The price of Bitcoin (BTC) continues to rise, reaching $64,316 on Wednesday. This increase is attributed to several factors, including ETF inflows and hopes for a US-Iran diplomatic breakthrough.

US-listed spot BTC ETFs recorded net inflows of $211.49 million on Tuesday, marking the second consecutive day of positive flows. This influx of institutional demand has boosted risk sentiment and supported the price of Bitcoin.

The OPEC+ decision to increase oil production from September has also eased supply concerns, dragging crude prices to a fresh low since June 13. This development has contributed to reduced geopolitical and energy-market concerns, which in turn is putting downward pressure on inflationary pressures and expectations for a more hawkish Federal Reserve.

According to the CME FedWatch Tool, market participants are currently pricing in a 58.9% probability of a Fed rate hike in September, down from 64.7% on Tuesday. This decrease in probability has exerted pressure on the US Dollar and supported risk assets such as Bitcoin.