Bitcoin stayed above $63,000 on Tuesday after losing some momentum in the previous session.
Investors weighed fresh geopolitical tensions in the Middle East against improving demand for U.S.-listed spot Bitcoin ETFs.
Bitcoin Holds Above $63,000
The world’s largest cryptocurrency traded 0.4% higher at $63,342.27 by 03:22 ET, or 07:22 GMT.
Bitcoin had climbed as high as $64,600 over the previous 24 hours before giving back part of its gains.
Traders Watch Iran Tensions and Tech Weakness
Bitcoin followed weaker sentiment across risk assets.
Technology stocks in Asia came under pressure as investors grew more cautious about stretched valuations linked to artificial intelligence.
South Korea’s benchmark KOSPI fell sharply despite a strong earnings outlook from Samsung Electronics. The move triggered heavy selling across chip stocks.
U.S. stock futures also pointed lower, adding to the cautious market mood.
Crypto Market Faces Risk-Off Pressure
Cryptocurrencies have increasingly moved in line with technology stocks during periods of changing risk appetite.
As a result, crypto prices came under pressure as investors reduced exposure to speculative assets.
Fresh tensions in the Middle East also kept traders cautious.
According to Axios, Iran’s military fired at least two missiles at commercial ships passing through the Strait of Hormuz on Monday night. The attack ended a week-long pause in strikes under a U.S.-Iran understanding.
Bitcoin ETFs Return to Inflows
Despite the cautious market backdrop, institutional demand for Bitcoin showed signs of recovery.
U.S.-listed spot Bitcoin ETFs recorded $265.7 million in net inflows on Monday, according to data from SoSoValue.
That followed $221.7 million in inflows on July 2.
ETF Demand Improves After June Outflows
The latest inflows marked a sharp turnaround from late June.
During that period, investors withdrew nearly $2.4 billion from spot Bitcoin funds over several sessions.
The outflows came amid macroeconomic uncertainty and profit-taking after Bitcoin’s earlier gains.
Fed Signals Remain in Focus
Markets are also watching upcoming U.S. economic data and signals from the Federal Reserve.
Traders are looking for more clarity on the outlook for interest rates.
Any change in rate expectations could influence both Bitcoin and broader risk assets.
Altcoins Trade in Tight Ranges
Altcoins were mixed on Tuesday, with most major tokens trading within narrow ranges.
Ethereum, the world’s second-largest cryptocurrency, fell 2% to $1,779.18.
XRP declined 1.1% to $1.13.
Solana rose 1%, while Cardano slipped nearly 2%.
Among meme coins, Dogecoin fell 2%.
