Oil Price Surge, ETF Outflows Weigh Heavily on Bitcoin
Bitcoin's price slipped below $64,000 on Tuesday as rising oil prices and geopolitical uncertainty weighed on market sentiment. The cryptocurrency's value fell by 1.44% during the previous session, with its current price hovering near $63,916.
The US-Iran negotiations have stalled, leading to increased concerns about a prolonged disruption in the Strait of Hormuz, which has pushed oil prices higher and pressured risk-sensitive assets like Bitcoin. The combination of geopolitical uncertainty, renewed inflation concerns, and softer demand from institutional investors is limiting Bitcoin's ability to recover.
US spot Bitcoin exchange-traded funds recorded net outflows of $144.67 million on Monday, ending a five-day run of positive flows. This has added to the pressure on Bitcoin's price, which must reclaim its 50-day exponential moving average at $64,625 to improve its short-term outlook.