Bitcoin Holds Above $63,000 as Investors Weigh Middle East Risks and ETF Demand

Bitcoin held above $63,000 on Tuesday after giving up some of the previous session's gains, as investors weighed renewed geopolitical concerns in the Middle East against improving demand for U.S.-listed spot Bitcoin ETFs.

The world's largest cryptocurrency traded about 0.4% higher near $63,342 after rising as high as $64,600 over the previous 24 hours.

Risk sentiment remained cautious as AI valuation concerns pressured Asian technology stocks. South Korea's KOSPI fell despite a stronger earnings outlook from Samsung Electronics, while U.S. stock futures also pointed lower. Axios also reported renewed security concerns involving commercial shipping in the Strait of Hormuz, adding to market caution.

Institutional demand remained supportive. According to SoSoValue, U.S.-listed spot Bitcoin ETFs recorded net inflows of $265.7 million on Monday after inflows of $221.7 million on July 2, following a period of net outflows in late June.

What's next: Markets will monitor upcoming U.S. economic data, Federal Reserve signals, and developments in the Middle East for further direction.