Bitcoin Nears $65,000 as ETF Inflows Improve and Geopolitical Hopes Rise

Bitcoin (BTC) rose toward the $65,000 mark on Thursday, buoyed by improving investor sentiment linked to positive macroeconomic developments and a recent uptick in capital flows into U.S. spot exchange-traded funds (ETFs).

As of 2:18 a.m. ET, the world's largest cryptocurrency was up 0.8% to trade at $64,739.1, according to Investing.com data.

Macro Factors Boost Risk Appetite

A key driver for broader market optimism this week has been the prospect of a deal to reopen the Strait of Hormuz. Reports indicated that Iran was close to an agreement with Oman, and U.S. President Donald Trump stated that negotiations with Iran were progressing well, though Tehran has reportedly denied direct talks with Washington.

The potential for de-escalation in the critical shipping lane has pushed oil prices lower, easing concerns about global energy supplies and inflation. While there is no direct link between oil markets and cryptocurrencies, lower inflation expectations tend to improve sentiment for speculative, risk-sensitive assets like Bitcoin.

ETF Flows Show Signs of Recovery

Adding direct support to Bitcoin's price, inflows into spot Bitcoin ETFs have accelerated in early August. According to data from SoSoValue, these funds have seen cumulative net inflows of $626 million so far this month.

Ad

This marks a significant increase from the $172.4 million in net inflows recorded for all of July. However, the sustainability of this trend remains in question, as it follows a period of heavy withdrawals, with the ETFs seeing combined net outflows of nearly $7 billion across May and June.

Broader Crypto Market Remains Mixed

Despite Bitcoin's advance, the wider cryptocurrency market showed mixed performance, with overall sentiment remaining cautious. This comes amid a series of lackluster earnings reports from crypto-related companies, including recent disappointing results from MicroStrategy and Coinbase.

Other major cryptocurrencies saw varied results:

• Ethereum (ETH) gained 2.2% to $1,912.90.
• XRP fell by 1.5% to $1.0506.
• Solana (SOL) and Dogecoin (DOGE) traded flat, while Cardano (ADA) and BNB posted minor losses.