Bitcoin rebounds as talks progress between Iran and Israel
As XRP faces ongoing legal challenges, Bitcoin (BTC) has seen a boost due to the recent developments in the Middle East. On June 23, President Trump announced a ceasefire between Iran and Israel, stating:
“There is a full agreement between Israel and Iran, and there will be a complete ceasefire (approximately six hours from now, Israel and Iran have progressed ongoing, completing their final mission!) for 12 hours, the war is over!”
This announcement coincided with a significant drop in WTI crude oil prices, which fell by 9.22% to close Monday at $66.775. Lower oil prices might alleviate inflation concerns, potentially allowing central banks to resume interest rate cuts and increasing appetite for riskier assets.
US BTC Spot ETF sees increased inflows
The ceasefire has led to heightened demand for BTC spot ETFs, which is crucial for Bitcoin’s price trajectory. According to Farside Investors, notable inflows on June 23 included:
- The Fidelity Wise Origin Bitcoin Fund (FBTC) with a net inflow of $105.7 million.
- The Bitwise Bitcoin ETF (BITB) with a net inflow of $14.6 million.
- The Grayscale Bitcoin Mini Trust (BTC) with a net inflow of $10.1 million.
Excluding pending data from BlackRock’s Ishares Bitcoin Trust (IBIT), the US BTC Spot ETF market has recorded a total inflow of $133 million. Notably, the market could extend its inflow streak to ten consecutive sessions.
BTC price outlook: Middle East tensions, trade news, and ETF flows
On June 23, BTC rose by 4.42%, closing at $105,442, reflecting a rebound. The short-term price outlook hinges on several critical factors, such as developments in the Middle East, trade-related updates, and ETF inflows.
Possible scenarios include:
- Bearish scenario: Increased tensions in the Middle East, legislative barriers, US tariff threats, and ETF issues could push BTC to the 50-day exponential moving average (EMA), potentially testing the $100,000 level.
- Bullish scenario: An agreement on the U.S.-Iran nuclear deal, bipartisan support for Bitcoin legislation, easing trade tensions, and strong ETF inflows could propel BTC toward an all-time high of $111,917.
