Bitcoin Nears $66,000 as ETF Inflows Rebound Amid Middle East Tensions

Bitcoin extended its recent rally on Tuesday, climbing toward the $66,000 level as a rebound in capital flows to spot Bitcoin exchange-traded funds (ETFs) signaled renewed institutional demand. The gains came amid a complex geopolitical environment, with escalating U.S.-Iran tensions tempering broader market sentiment.

By 2:00 AM ET, Bitcoin had gained 2.6% to reach a two-week high of $65,755.4, according to Investing.com data.

ETF Flows Signal Renewed Interest

A primary driver of the recent price strength has been the resurgence of inflows into U.S.-based spot Bitcoin ETFs. These funds have now recorded net positive flows for two consecutive weeks, suggesting that institutional investors may be capitalizing on lower prices following a recent market downturn.

Data from the aggregation platform SoSoValue shows that Bitcoin ETFs attracted $75.7 million in net inflows two weeks ago, followed by a larger $197.4 million last week. The renewed interest in crypto also coincides with increased volatility in high-flying artificial intelligence stocks, potentially prompting some capital rotation.

Geopolitical Headwinds Persist

Ad

While ETF data provided a tailwind, the broader market remains on edge due to ongoing conflict in the Middle East. The U.S. and Iran engaged in a tenth straight day of retaliatory strikes on Monday, and Iran's blockade of the Strait of Hormuz continues to disrupt global trade.

However, reports of a new peace proposal from regional mediators offered a glimmer of hope, helping oil prices retreat from five-week highs on Tuesday. This pullback eased some investor concerns about energy-driven inflation. The uncertain environment creates a mixed picture for Bitcoin, which can act as a safe-haven asset but is also vulnerable to broad, risk-off sentiment.

Altcoins Join the Rally

The positive momentum was reflected across the wider cryptocurrency market, though most major tokens are still nursing significant losses from recent weeks.

• Ethereum (ETH), the second-largest cryptocurrency, rose 4.6% to $1,934.71.
• Other major gainers included Cardano (ADA), which surged 9.2%, and XRP, which added 4.6%.
• Solana (SOL) and BNB also posted gains of 3.9% and 2.1%, respectively.