Bitcoin Tumbles Below $65,800 as Geopolitical Tensions Escalate
Bitcoin's recent correction shows no signs of slowing down as it slips below $65,800. The cryptocurrency's price decline is attributed to growing geopolitical tensions in the Middle East and higher oil prices.
The conflict between the US and Iran has intensified, with both sides engaging in a series of attacks on each other's military assets. The escalating situation has pushed crude oil prices sharply higher, raising concerns about potential disruptions to global energy supplies.
As inflation expectations rise, investors are increasingly anticipating that the Federal Reserve may maintain a tighter monetary policy for longer than previously anticipated. This shift could reduce the appeal of risk-sensitive assets such as cryptocurrencies by increasing the attractiveness of fixed-income investments and tightening financial conditions.
Despite Bitcoin's recent weakness, institutional demand has remained resilient, with US-listed spot Bitcoin ETFs recording $68.99 million in net inflows on Wednesday. The continued accumulation by institutional investors suggests that long-term confidence in Bitcoin remains intact, even as short-term macroeconomic uncertainty weighs on prices.