Bitcoin holding firm at around $105,000 despite recent geopolitical and economic shocks suggests a sign of strength and investor confidence.
1254 Total views
2 Total shares
Bitcoin (BTC) exchange-traded funds (ETFs) recorded five days of consecutive inflows, despite the recent geopolitical turmoil caused by the Israel-Iran conflict.
According to data from Farside Investors, the streak began on Monday, June 9, with inflows of over $386 million and continued through Friday, with an additional $301 million in inflows. In total, over $1.3 billion in capital moved into Bitcoin ETFs over the past five days.
The price of Bitcoin has proved resilient in the wake of the Israeli airstrikes on Iran, dropping by roughly 3% in response to the news. Coin Bureau founder Nic Puckrin said:
“Over the long term, what matters most for Bitcoin is not geopolitics, it is the US dollar index (DXY), and the DXY has just broken below 100, its lowest level in over three years. It is clear USD is only going in one direction, and Bitcoin typically goes in the opposite.”
Despite this, the analyst warned that risk-on assets could see a significant short-term price drop if Iran chooses to close the Strait of Hormuz, a narrow waterway through which 20% of the global oil supply passes.
Closing the Strait would cause a spike in energy prices, disrupting global markets. Retaliatory military strikes by both sides over the weekend threaten to spark a full-blown regional war that will impact crypto markets and asset prices.
Related: Bitcoin price breakout to $119K possible if oil rally pattern holds
Bitcoin holds steady despite recent geopolitical shock
“It is encouraging to see that after briefly dipping below $103,000, as $422 million in Bitcoin longs got liquidated, BTC has recovered to trade around $105,000,” Puckrin said on Friday.
Bitcoin is only trading less than 6% away from its all-time high of $112,000 recorded on May 22, despite the ongoing geopolitical tensions.
This price resilience caused some analysts to forecast a Bitcoin price rally that could catapult BTC to new all-time highs in the coming weeks and months.
Bitcoin adoption continues to be fueled by ongoing macroeconomic uncertainty, high government debt, geopolitical tensions, and the fracturing of legacy financial systems, which all erode savings — making the supply-capped asset an attractive alternative for investors.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Magazine: US risks being ‘front run’ on Bitcoin reserve by other nations: Samson Mow
