Bitcoin Dips Below $64,000 as U.S.-Iran Tensions and Tech Sell-Off Spook Markets

Bitcoin's price fell on Tuesday as a broader risk-off sentiment gripped financial markets, fueled by U.S. military strikes against Iran and a significant sell-off in technology stocks. The leading cryptocurrency dipped below the $64,000 level despite signs of renewed institutional buying through spot exchange-traded funds (ETFs).

By evening trading at 18:04 ET, Bitcoin was down 1.4% to $63,305.0, according to data from Investing.com. The decline reflects a wider investor retreat from assets perceived as risky amid heightened geopolitical uncertainty and weakness in equity markets.

Geopolitical and Tech Headwinds

The primary catalyst for the market's cautious tone was the U.S. military's announcement of retaliatory strikes against Iran. U.S. Central Command (CENTCOM) confirmed the strikes were a response to attacks on three commercial oil tankers in the Strait of Hormuz. This escalation, which caused oil prices to spike more than 5%, prompted a typical flight to safer assets.

Compounding the negative sentiment was a slide in technology stocks. The sell-off was reportedly sparked by investor concerns that the artificial intelligence rally has become overextended, following preliminary results and guidance from Samsung Electronics.

ETF Inflows Provide Some Support

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Despite the price drop, data on institutional flows offered a more constructive signal for Bitcoin. U.S.-listed spot Bitcoin ETFs recorded net inflows of $265.7 million on Monday, extending a positive trend after $221.7 million of inflows on July 2, according to figures compiled by SoSoValue.

This marks a notable reversal from late June, when the funds saw nearly $2.4 billion in outflows over several sessions. The renewed buying suggests that underlying institutional demand may be stabilizing, providing a potential floor for prices.

Altcoins Follow Bitcoin Lower

The negative sentiment extended across the digital asset market, with most major alternative cryptocurrencies, or altcoins, posting losses in line with Bitcoin.

• Ethereum (ETH), the second-largest cryptocurrency, fell 1.8% to $1,773.32.
• XRP slipped 3.1%.
• Other major tokens including Solana (SOL) and Cardano (ADA) lost 2% and 5.5%, respectively.