Bitcoin Falls Below $62,000 as Middle East Tensions Weigh on Risk Appetite

Bitcoin fell 1.7% to $61,963 on July 8 after renewed tensions between the United States and Iran prompted a broader sell-off in risk assets. The decline was accompanied by more than $400 million in liquidations of leveraged long positions over the past 24 hours, according to CoinDesk.

Investor sentiment also remained under pressure as U.S. spot Bitcoin exchange-traded funds (ETFs) recorded $4.06 billion in net outflows during June, the largest monthly withdrawal on record. Total net outflows for the year have exceeded $5.4 billion, reflecting continued caution among institutional investors.

Meanwhile, on-chain data showed large Bitcoin holders accumulated more than 270,000 BTC during the two weeks leading into early July, indicating continued buying activity despite recent market volatility.

Oil prices also moved higher amid concerns over potential supply disruptions in the Middle East, while investors continued to monitor expectations for U.S. monetary policy ahead of the Federal Reserve's July meeting.