Bitcoin (BTC) traded near 63 000 $ on Monday, marking a 1,4 % decline over 24 hours as geopolitical tensions in the Middle East and profit-taking by traders suppressed appetite for risk assets. According to data from SoSoValue, the market is showing a shift in institutional sentiment, with spot Bitcoin ETFs recording their first net inflows in nine weeks.
Market Reaction to Geopolitical Pressure
The recent downturn follows a period of volatility linked to renewed tensions between the United States and Iran. Investors moved to reduce exposure to high-risk assets, causing significant market shifts elsewhere. Global markets reacted sharply to the situation, with the South Korean Kospi index falling 9,2 % and WTI crude oil prices rising 3 % to trade above $73 per barrel.
The pullback in Bitcoin also stems from routine profit-taking. After the cryptocurrency climbed over the weekend, traders moved to secure gains, contributing to approximately $253 million in liquidations over a 24-hour period. Most of these liquidations involved long positions, though the impact remained smaller than the market-wide sell-offs observed during the previous month. Bitcoin has largely remained in a 59 000 $ to 66 000 $ range for the past month, suggesting the current movement is a continuation of established price behavior rather than a trend reversal.
Institutional ETF Flows Signal Potential Shift
For the first time in two months, institutional interest as measured by spot Bitcoin ETF flows has turned positive. After eight consecutive weeks of outflows that saw 2,43 billion dollars in exits during May and 4,5 billion dollars in June, SoSoValue reports that these funds captured $197 million in net inflows over the past week.
While July has recorded $124 million in net inflows to date, analysts suggest that the long-term structural demand remains contingent on sustained activity from major funds, such as BlackRock’s IBIT. This shift marks a departure from the institutional withdrawal trend that dominated the second quarter.
Corporate Holdings and Altcoin Performance
Strategy (MSTR) recently raised 466,7 million dollars through an equity offering. According to company financial disclosures, this capital infusion increased their cash reserves to 3 billion dollars while their total Bitcoin holdings remained steady at 843 775 BTC.
Smaller-cap assets, often referred to as altcoins, experienced steeper declines during the Monday session:
- Lighter ($LIT): Dropped 8 % following a two-month rally that had previously seen the asset climb over 200 %.
- Cardano ($ADA): Declined 19 % since July 4, continuing a volatile period that included a 39 % drop in June followed by a 40 % recovery early this month.
- Jupiter ($JUP): Fell more than 15 % on the week as daily trading volume dropped to $17 million, a significant decrease from the $500 million daily volume levels observed in 2025.
Macroeconomic Indicators to Watch
Investors are focused on two major economic markers this week that could influence Federal Reserve policy. The U.S. Consumer Price Index (CPI) for June is scheduled for release on Tuesday, followed by the Producer Price Index (PPI) on Wednesday. Lower inflation figures could bolster the case for a more accommodative monetary policy, which historically correlates with increased interest in Bitcoin.
Additionally, markets are monitoring the testimony of Kevin Warsh before the House and Senate. Traders are analyzing his commentary for insights into future interest rate adjustments, as his previous comments in June regarding potential rate hikes contributed to downward pressure on digital asset prices. Regulatory developments also remain in focus, specifically the progress of the CLARITY Act and the July 18 deadline for the GENIUS Act regarding stablecoin regulation.
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