By Maya Rios
Bitcoin traded above the $63,000 mark on Tuesday after surrendering some upside from a recent peak, with the largest cryptocurrency last changing hands at $63,342.27, up 0.4% at 03:22 ET (07:22 GMT). Over the prior 24 hours it had climbed as high as $64,600 before giving back a portion of those gains.
Market participants said the move reflected a tug-of-war between renewed geopolitical strain in the Middle East and improving institutional demand for U.S.-listed spot bitcoin exchange-traded funds.
Risk sentiment and tech pressure
Risk appetite across global markets softened amid profit-taking in technology-related names, a development that rippled into cryptocurrencies which have recently shown closer correlation with tech stocks during episodes of shifting risk tolerance.
In Asia, South Korea's KOSPI index tumbled despite a bullish earnings outlook from Samsung Electronics (KS:005930), fueling a pronounced selloff among semiconductor-focused companies. U.S. stock futures were also pointed lower, reflecting a broader tone of caution.
Geopolitical development
Fresh tensions in the Middle East added to market caution. Iran's military fired at least two missiles at commercial vessels transiting the Strait of Hormuz on Monday night, ending a week-long pause in attacks under an understanding with the United States, according to reporting published on Tuesday. The development contributed to a risk-off backdrop for assets deemed speculative.
ETF flows show improving institutional participation
On the demand side, U.S.-listed spot bitcoin ETFs posted net inflows of $265.7 million on Monday, based on data compiled by SoSoValue. That followed $221.7 million of inflows on July 2, marking a continuation of net buying after a period of sustained withdrawals in late June when investors pulled nearly $2.4 billion from spot bitcoin funds across several sessions amid heightened macro uncertainty and profit-taking.
Market watchers noted that these inflows represent a notable shift from the late-June outflows, though participants remain attentive to incoming U.S. economic data and Federal Reserve commentary for guidance on the interest-rate outlook.
Altcoins mixed within narrow bands
Alternative cryptocurrencies traded in a mixed but rangebound fashion. Ethereum fell 2% to $1,779.18, while XRP slid 1.1% to $1.13. Solana gained about 1%, Cardano eased nearly 2%, and meme token Dogecoin slipped 2%.
Overall, the session reflected an interplay of improved institutional ETF flows for bitcoin and broader market headwinds tied to technology valuations and geopolitical uncertainty.