BTC Price Falters Amid ETF Inflows and Geopolitical Tensions
Bitcoin's price wavered on Tuesday as American investors continued to rotate into the cryptocurrency following the recent Coldcard hack, which led to over $130 million in losses. Despite this, data shows that these funds added over $850 million last week and continued to do so on Monday.
The inflows into Bitcoin have been driven by investor concerns about the security of their coins, particularly those stored in cold wallets. The Coldcard hack has raised fears that quantum computing models may be able to hack into Bitcoin's network in the future.
Additionally, geopolitical risks rose over the weekend as Iran issued a list of demands for the US to reopen the Strait of Hormuz, leading to a jump in crude oil prices and potentially higher inflation. This could reduce the odds of the Federal Reserve cutting interest rates, even after last week's nonfarm payrolls data showed the economy lost over 23k jobs.
Strategy, a company that sold 1,690 Bitcoin coins last week to fund its cash assets, raised $650 million and used some of the cash to buy STRC shares. The BTC/USD pair is currently trading at around 64,000, below the July high of 66,875.