Bitcoin Hovers Near All-Time High Amid Geopolitical Tensions and Weak Trading Volumes

Bitcoin (BTC) is currently trading around $107,261, hovering near its all-time high but showing signs of consolidation. The lack of momentum in the market, coupled with weak trading volumes and inflation, suggests that BTC may continue to consolidate in the near term. The recent price action has been influenced by various factors, including geopolitical tensions and on-chain metrics.

On Sunday, BTC plunged below $100,000 due to escalating conflict in the Middle East, but a subsequent ceasefire brought relief and allowed the cryptocurrency to reclaim $105,000 and stabilize around $107,000. However, weak on-chain activity and subdued user participation indicate a lack of momentum, which could continue to weigh on the price. Analysts believe that bearish momentum could persist next week as the latest inflation data suggests the Federal Reserve has little reason to shift its current stance.

Despite the recent price volatility, Bitcoin miners have shown resilience by holding onto their BTC holdings. According to a report, daily revenues for miners plunged to $34 million on June 22, the lowest since April, due to muted price action and low transaction fees. The Bitcoin Network’s hashrate has also fallen 3.5% since mid-June, its sharpest decline in a year. Outflows from miner wallets have dropped sharply, from 23,000 BTC in February to 6,000 BTC, indicating little enthusiasm to liquidate their holdings at current price levels. Even early “Satoshi-era” miners are holding onto their BTC, with only 150 BTC sold from dormant wallets so far this year.

In other news, US spot Bitcoin ETFs are experiencing their longest inflow streak since December 2024, with over $2.9 billion in inflows over 13 consecutive days. The largest single-day inflow streak occurred on Tuesday, registering over $588 million in inflows, extending weekly inflows to $1.2 billion. BlackRock’s IBIT led the inflows with $163.7 million, while Fidelity’s FBTC registered $32.9 million in inflows. Bitwise’s BITB saw the third largest inflows with $25.2 million. Other funds that registered substantial inflows include Ark’s AKRB and Invesco’s BTCO. Meanwhile, Grayscale’s GBTC and smaller ETFs failed to register meaningful inflows. Sustained inflows indicate growing institutional interest and appetite for crypto investment products as ETF managers execute purchases through over-the-counter (OTC) channels to minimize impact.

New York City is witnessing a pivot toward digital assets, reshaping how it envisions its financial future. New York City Mayor Eric Adams reiterated his support for digital assets during a chat at the Tokenization and Programmable Real World Assets Injective Summit on June 26. Adams stated that his decision to take his first three paychecks in Bitcoin had aged well despite initial skepticism and criticism, highlighting the long-term value gains. The NYC Mayor also condemned the city’s Bitlicense framework, stating it stifled innovation and deterred crypto startups. He called on the crypto community to actively engage in the legislation and proposed abolishing the current Bitlicense structure to make the city more crypto-friendly.