Bitcoin traded above $63,000 on Tuesday as investors balanced renewed geopolitical tensions in the Middle East with stronger inflows into U.S.-listed spot Bitcoin exchange-traded funds (ETFs).
The world’s largest cryptocurrency was down 1.38 percent at $63,114 as of 11:04 GMT. Bitcoin had climbed to an intraday high of $64,600 over the past 24 hours before surrendering part of those gains.
Investors reduce exposure to risk assets amid AI sell-off
Bitcoin’s decline mirrored weakness across broader risk assets, as concerns over elevated valuations in the artificial intelligence sector weighed on technology stocks across Asia.
South Korea’s benchmark KOSPI fell sharply despite strong earnings guidance from Samsung Electronics, triggering a broad selloff in semiconductor stocks. U.S. stock futures also pointed to a weaker open.
Cryptocurrencies, which have increasingly moved in tandem with technology shares during periods of changing risk sentiment, also came under pressure as investors reduced exposure to riskier assets.
Market caution was further reinforced by renewed geopolitical tensions in the Middle East. Iran’s military reportedly fired at least two missiles at commercial vessels passing through the Strait of Hormuz on Monday night, ending a week-long pause in attacks under a U.S.-Iran understanding.
Read: Bitcoin nears $62,000 as softer U.S. jobs data eases Fed rate hike bets
U.S.-listed spot Bitcoin ETFs attract $265.7 million net inflows
Despite the broader risk-off sentiment, institutional demand for Bitcoin continued to strengthen. U.S.-listed spot Bitcoin ETFs attracted net inflows of $265.7 million on Monday, according to SoSoValue data, following inflows of $221.7 million on July 2.
The latest gains marked a notable recovery after nearly $2.4 billion was withdrawn from spot Bitcoin funds over several sessions in late June, as investors responded to heightened macroeconomic uncertainty and booked profits.
Investors are now turning their attention to upcoming U.S. economic data and signals from the Federal Reserve for further clues on the interest-rate outlook, which could influence demand for cryptocurrencies and other risk-sensitive assets.
As Bitcoin declined, altcoins were mixed on Tuesday, with most major tokens trading in narrow ranges.
The world’s second-largest cryptocurrency, Ethereum, gained 0.74 percent to $1,775.57, while XRP, the third-largest token, fell 1.24 percent to $1.1218.
Solana rose 0.61 percent to $80.974, whereas Cardano declined 2.87 percent.
Among meme cryptocurrencies, Dogecoin dropped 2.93 percent.
