Bitcoin held above $63,000 on Tuesday, after slipping slightly in the previous session, as investors weighed renewed geopolitical tensions in the Middle East against improved demand for U.S.-listed Bitcoin spot exchange-traded funds.
The world's largest cryptocurrency rose 0.4% to $63,342.27 by 10:22 AM.
Bitcoin had risen to $64,600 in the previous 24 hours, before giving up some of its gains.
Traders are weighing Middle East tensions against a sell-off in tech stocks.
Bitcoin was affected by the negative sentiment that dominated high-risk asset markets, as concerns about high valuations associated with artificial intelligence put pressure on technology stocks in Asia.
South Korea’s Kospi index fell sharply, despite positive earnings forecasts for Samsung Electronics, triggering a strong sell-off in shares of semiconductor manufacturers, while US stock futures also pointed to an expected decline.
Cryptocurrencies have also come under increasing pressure, as they have begun to move in tandem with technology stocks during periods of fluctuating risk appetite, as investors tend to reduce their exposure to high-risk assets.
Meanwhile, renewed tensions in the Middle East kept markets on edge. According to Axios on Tuesday, the Iranian military fired at least two missiles at commercial vessels transiting the Strait of Hormuz on Monday evening, ending a week-long lull in attacks that had been part of a US-Iranian understanding.
Bitcoin exchange-traded funds (ETFs) are recording net inflows after a series of withdrawals.
In contrast, institutional demand showed signs of improvement.
US-listed Bitcoin spot exchange-traded funds (ETFs) recorded net inflows of $265.7 million on Monday, according to data compiled by SoSoValue, continuing an upward trajectory after inflows of $221.7 million on July 2.
These inflows marked a sharp shift after a week of sustained outflows in late June, when investors pulled nearly $2.4 billion from Bitcoin spot funds over several sessions, amid escalating macroeconomic uncertainty and profit-taking.
Market participants are also awaiting upcoming US economic data, along with signals from the Federal Reserve, looking for clues about the path of interest rates.
Cryptocurrency prices today: Altcoins are moving within narrow ranges
Alternative currencies traded mixed within narrow price ranges.
Ethereum, the world's second-largest cryptocurrency, fell 2% to $1,779.18.
XRP, the world's third-largest cryptocurrency, also fell by 1.1% to $1.13.
In contrast, Solana rose by 1%, while Cardano fell by about 2%.
As for the meme currency category, Dogecoin fell by 2%.
