Bitcoin held steady at $64,000 on Wednesday, despite a slight retreat from a three-week high, as escalating geopolitical tensions between the U.S. and Iran affected market sentiment. According to Coinglass, 65,125 traders were liquidated in the past 24 hours, resulting in losses of $223.54 million.
ETF Inflows
Investor interest in Bitcoin remained robust, with spot Bitcoin ETFs recording net inflows of $107.8 million on Wednesday. Spot Ethereum ETFs also saw positive movement, with net inflows of $53.8 million. This indicates continued institutional support for Bitcoin, which is reflected in the approximately 1.21 million BTC held by Wall Street spot Bitcoin ETFs, as noted by macro economist Seth.
Market Trends
Despite the positive ETF inflows, Bitcoin experienced a decline of about 2% since the 14th of the month, following a historical pattern where it typically pulls back after mid-month. Trader KillaXBT highlighted that Bitcoin has historically shown a tendency to revisit the $60,000–$62,000 range after such pullbacks. Additionally, large holders, or "whales," reportedly sold around 12,555 BTC during the recent price rally, suggesting profit-taking rather than accumulation.
The ongoing geopolitical tensions could lead to increased volatility in cryptocurrency markets, particularly affecting Bitcoin and Ethereum prices. Investors may react to these tensions by reallocating assets or adjusting their risk exposure.
Watch for further developments in U.S.-Iran relations and their potential impact on market sentiment in the coming days.