Bitcoin Resilient Despite Iran Tensions and Inflation Concerns

The Bitcoin price has held firm above a key support zone despite escalating US-Iran tensions driving up inflation concerns. At the time of writing on Friday, BTC is trading at $64,300 after edging slightly lower.

US-listed spot Bitcoin Exchange Traded Funds (ETFs) have been attracting institutional flows through Thursday, with net inflows recorded for the fourth consecutive week. This points to growing interest from large-scale investors in the cryptocurrency market.

The US military's recent strikes against Iran and Tehran's rejection of a proposed joint management plan for the Strait of Hormuz have fueled volatility in crude oil prices. Rising energy costs could revive inflationary pressure, forcing the Federal Reserve to adopt a hawkish stance, which would dampen risk appetite and negatively impact Bitcoin.

Despite this, institutional demand remains strong, with spot BTC ETFs recording an inflow of $203.84 million through Thursday. If Friday's flows are positive, Bitcoin will have entered its fourth week of steady inflows.