Bitcoin dips below $64,500 as geopolitical uncertainty offsets institutional inflows
Bitcoin slipped with US stocks after Iran signalled military solutions would not reopen the Strait of Hormuz, though onchain data showed exceptionally strong institutional buying activity in recent sessions.
Bitcoin fell below $64,500 on Monday as markets weighed renewed US-Iran tensions over the Strait of Hormuz. BTC/USD hit $64,447 on Bitstamp, its lowest point since Friday, before a modest recovery. The move mirrored a dip in US equities triggered by comments from Iranian deputy speaker Ali Nikzad, who stated that opening the strait "has no military solution."
US WTI crude oil surged nearly 5% to $80.90 per barrel on the news, while the S&P 500 reversed to turn positive despite remaining below Friday's record highs. Separately, the Japanese yen continued weakening against the US dollar despite an earlier joint intervention from Japan and the US, with USD/JPY reaching 159. Economist Mohamed El-Erian warned that Japan would need more decisive policy action to sustain the currency support.
Bitcoin analysts cautioned that the attempted price rebound "remains tentative." Glassnode noted weak spot-market momentum as a missing component of sustained recovery, reporting that centralised exchange turnover remains subdued despite accelerating spot taker buying. Among positive signals, the onchain analytics firm highlighted "exceptionally strong" institutional inflows, with US spot Bitcoin ETFs recording net inflows of $865.3 million in the previous week.
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