Bitcoin fell below $63,000 as US military strikes on Iran and renewed US-China trade tensions triggered a broad risk-off sell-off across global markets. However, analysts noted that resilient onchain data and renewed ETF inflows suggest buyers are stepping back into the market.
The price decline accelerated Friday after reports of US operations against Iranian targets, adding a geopolitical dimension to what had already been a challenging week for risk assets. The simultaneous deterioration in US-China trade relations compounded the uncertainty, with both developments weighing on investor sentiment.
Despite the negative headlines, several on-chain metrics point to underlying demand for Bitcoin at current levels. Exchange reserves have continued to decline, suggesting that coins are moving into cold storage rather than being prepared for sale. Meanwhile, the number of addresses holding Bitcoin for more than a year has remained relatively stable, indicating that long-term conviction has not been broken.
Spot Bitcoin ETFs also showed signs of renewed inflows on Thursday and Friday, with BlackRock’s IBIT fund recording positive flows after a period of mixed activity. While the inflows have not been large enough to reverse the price decline, they suggest that institutional interest has not evaporated entirely.
The combination of geopolitical risk and improving on-chain fundamentals creates an uncertain outlook. Some analysts view the current price level as a buying opportunity, pointing to the network’s hashrate remaining near all-time highs as evidence that miners see value at these prices.
This article was adapted from Bitcoin Magazine. Read the original here.
