Bitcoin Slides Below $64,000 as Mideast Tensions and Tech Weakness Dampen Risk Appetite

Bitcoin's price extended its losses on Tuesday, falling amid a broader risk-off sentiment in financial markets. The downdraft was fueled by escalating geopolitical tensions in the Middle East and a concurrent sell-off in major technology stocks, overshadowing signs of renewed institutional demand for spot Bitcoin ETFs.

By 18:04 ET (22:04 GMT), the world's largest cryptocurrency was trading down 1.4% at $63,305.0, according to Investing.com data.

Geopolitical Tensions Rattle Markets

Investor sentiment soured after the U.S. military launched retaliatory strikes against Iran. U.S. Central Command (CENTCOM) stated the strikes were a response to attacks on three commercial oil tankers transiting the Strait of Hormuz. The United Kingdom Maritime Trade Operations (UKMTO) had earlier reported the attacks, which involved unknown projectiles and a drone.

The escalation prompted a flight to safety across markets, with oil prices spiking more than 5%. Such geopolitical instability typically drives investors away from assets perceived as higher risk, including cryptocurrencies, toward traditional safe havens.

Tech Sell-Off and ETF Flows

Adding to the headwinds was a slide in technology stocks, which often trade in correlation with digital assets. The weakness followed preliminary results and guidance from Samsung Electronics, which, despite a strong profit forecast, sparked investor concerns that the recent artificial intelligence-driven market rally may be overextended.

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Despite the negative macro environment, institutional demand for Bitcoin showed signs of resilience. According to data from SoSoValue, U.S.-listed spot Bitcoin ETFs recorded significant net inflows:

• $265.7 million on Monday, July 5.
• $221.7 million on Friday, July 2.

These inflows mark a notable reversal from late June, when the funds saw nearly $2.4 billion in net outflows over several sessions. Market participants are now looking ahead to the release of Federal Reserve meeting minutes on Wednesday for further clues on the U.S. interest-rate outlook.

Broader Crypto Market Declines

The negative sentiment impacted the wider cryptocurrency market, with most major altcoins tracking Bitcoin's decline. Ethereum (ETH), the second-largest crypto, fell 1.8% to $1,773.32. Other notable decliners included XRP, which slipped 3.1%, while Solana (SOL) and Cardano (ADA) lost 2% and 5.5%, respectively.