Bitcoin Recovers Near $63,000 as Middle East Tensions Remain in Focus
Bitcoin moved higher on Thursday, recovering part of its recent losses as investors reacted to signs of a possible slowdown in hostilities across the Middle East. However, continued outflows from cryptocurrency investment products and concerns about U.S. monetary policy kept overall market sentiment cautious.
The world’s largest cryptocurrency gained 1.3% to trade at $62,954 during the U.S. trading session. The rebound follows a difficult period for the crypto market, with Bitcoin falling to around $59,000 last week during a broader selloff across digital assets.
At the same time, stronger-than-expected U.S. employment and inflation data continued to fuel concerns that interest rates could remain elevated for longer, limiting demand for risk assets such as cryptocurrencies.
U.S.-Iran Conflict Continues to Influence Market Sentiment
Investor attention remained firmly focused on escalating tensions between the United States and Iran following several days of military exchanges.
The two countries exchanged airstrikes early Thursday, with U.S. President Donald Trump warning of additional military action unless Tehran agreed to a peace deal.
Despite the continued conflict, hopes for a potential de-escalation emerged after the U.S. military indicated that its latest round of strikes had concluded. Iran had previously responded to U.S. attacks by launching strikes against multiple targets in the Gulf region.
Nevertheless, uncertainty remains high as negotiations continue to stall over Iran’s nuclear program and control of the strategically important Strait of Hormuz.
The geopolitical uncertainty has limited investors’ willingness to take on additional risk, although global stock markets managed to recover some of their recent losses during Thursday’s session.
Bitcoin ETF Outflows Accelerate
Institutional investors continued withdrawing funds from spot Bitcoin exchange-traded funds (ETFs), adding further pressure to the cryptocurrency market.
According to data from SoSoValue, spot Bitcoin ETFs recorded net outflows of approximately $213.85 million on Wednesday. This marked a significant increase from the $77.4 million withdrawn on Tuesday and extended a broader trend that has seen more than $5 billion leave Bitcoin ETFs over the past three weeks.
The sustained outflows highlight weakening institutional demand at a time when investors remain cautious about economic and geopolitical developments.
SpaceX IPO Draws Investor Attention
Market analysts also pointed to capital rotation ahead of SpaceX’s highly anticipated initial public offering (IPO), scheduled for Friday.
Both institutional and retail investors have been moving capital out of assets such as cryptocurrencies and gold in order to participate in the offering. SpaceX is reportedly seeking to raise approximately $75 billion at a valuation of around $1.75 trillion.
Additionally, growing investor interest in artificial intelligence-related stocks has contributed to weaker demand for crypto assets in recent weeks, as capital continues to flow toward the AI sector.
Altcoins Trade Mixed as Market Awaits New Catalysts
The broader cryptocurrency market posted modest gains on Thursday, although price movements remained relatively limited due to a lack of strong bullish catalysts.
Ethereum, the second-largest cryptocurrency by market capitalization, traded nearly unchanged at $1,647 after experiencing significant losses in recent weeks. Spot Ether ETFs also continued to record net outflows, according to market data.
Among major altcoins, XRP declined 1.6%, while Solana edged 0.3% higher. Cardano remained largely flat, and Binance Coin (BNB) gained 1.1%.
In the memecoin sector, Dogecoin advanced 0.3%, while the TRUMP token rose 1.3% as traders cautiously returned to selected risk assets.
