Bitcoin Falls Toward $63,000 After U.S.-Iran Strikes; Spot ETF Flows Turn Positive for First Time in Eight Weeks

Bitcoin fell toward $63,000 after risk aversion spread across markets in the wake of U.S. and Iranian strikes. Still, spot Bitcoin exchange-traded funds posted net inflows for the first time in eight weeks, signaling a pickup in demand.

CoinDesk reported on July 13 that Bitcoin dropped more than 1% since 00:00 UTC and traded in the $63,000 range. The weekend exchange of strikes between the U.S. and Iran fueled a broader retreat from risk assets that spilled into the crypto market.

Energy markets also swung sharply. Brent crude futures rose more than 3% to near $79 a barrel as concerns grew over a possible closure of the Strait of Hormuz. Higher energy prices add to inflation pressure and leave less room for monetary easing, a dynamic that has also driven Bitcoin lower during past oil shocks.

Taran Dhillon, head of digital assets at Kula, told CoinDesk the crypto market this week may be tugged between macroeconomic data and geopolitics. U.S. inflation data due this week could influence interest-rate expectations, he added.

Demand indicators, however, showed a brighter tone. Spot Bitcoin and Ether ETFs both swung to net inflows after eight consecutive weeks of outflows. Dhillon said institutional capital tends to access the asset class more easily when uncertainty eases over how digital assets are classified and regulated. He added that progress on the Clarity Act, now under discussion in the U.S. Congress, could provide another tailwind.

Market participants are also watching this week's consumer price index and producer price index reports. Both are key indicators for the Federal Reserve's next move.