Bitcoin ETF Inflows Surge Amid Geopolitical Uncertainty
Bitcoin ETF Inflows Surge Amid Geopolitical Uncertainty
Bitcoin exchange-traded funds (ETFs) experienced five consecutive days of inflows totaling over $1.3 billion, defying recent geopolitical turmoil stemming from the Israel-Iran conflict. This influx of capital, according to data from Farside Investors, began on June 9th, with over $386 million entering Bitcoin ETFs and continued through June 13th, adding another $301 million.
While the price of Bitcoin dipped approximately 3% following news of the Israeli airstrikes, it has shown resilience. Coin Bureau founder Nic Puckrin notes that the US dollar index (DXY) falling below 100—its lowest point in three years—suggests a potential upward trend for Bitcoin, typically moving inversely to the USD.
However, Puckrin cautions that a closure of the Strait of Hormuz, a crucial oil shipping lane, could trigger a sharp, short-term drop in risk-on assets, including Bitcoin. Such an event would likely cause a spike in energy prices, disrupting global markets and potentially escalating the conflict.
Bitcoin's Price Resilience
Despite the geopolitical tensions, Bitcoin's price has remained relatively stable, trading within 6% of its all-time high of $112,000 (recorded May 22nd). This resilience is leading some analysts to predict a potential Bitcoin price rally. Bitcoin's price is currently hovering near $105,000.
This strength, according to analysts, could be driven by increasing Bitcoin adoption fueled by macroeconomic uncertainties, high government debt, ongoing geopolitical tensions, and the weakening of traditional financial systems. The limited supply of Bitcoin makes it an attractive alternative for investors.
Disclaimer: This article does not provide financial advice. Conduct thorough research before making any investment decisions.
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