Bitcoin Surges 9% as Middle East Tensions Ease, Institutional Inflows Hit $588.6 Million

Bitcoin's price has experienced significant volatility in recent days, largely influenced by geopolitical tensions in the Middle East. The cryptocurrency plummeted to a low of $98,200 following U.S. attacks on Iran but quickly rebounded, gaining nearly 9% over the past three days as ceasefire talks emerged. This price action has restored some market confidence, with Bitcoin now inching towards retesting its all-time high of $112,000.

A report by K33 Research indicates a strong correlation between 30-day ETF flows and Bitcoin returns, with an R² of 0.80. This suggests that spot Bitcoin ETF flows are a key driver of market movements. The recent 11-day streak of positive inflows into U.S. spot Bitcoin ETFs, totaling $588 million on June 24th, supports this analysis. Since June 10th, over $2.2 billion in inflows have been recorded, signaling substantial institutional interest in Bitcoin.

Institutional investors have been actively acquiring Bitcoin. Anthony Pompliano’s ProCap BTC, LLC recently purchased $386 million worth of Bitcoin, following similar moves by Strategy, Metaplanet, and the Blockchain Group. This trend underscores the growing institutional appetite for the cryptocurrency.

On June 24th, Bitcoin ETFs saw inflows of $588.6 million, the highest single-day total for the month. This extends the streak of positive net flows to 11 days, the longest since December 2024. BlackRock’s iShares Bitcoin Trust (IBIT) led with $436.3 million in inflows, while Fidelity’s FBTC added $217.6 million. Other contributors included Bitwise and VanEck. In contrast, Grayscale’s GBTC experienced outflows, losing $85.2 million.

Ether-based ETFs had mixed results, with VanEck’s EFUT gaining $98 million and Grayscale’s ETHE losing $26.7 million. Total inflows for ETH ETFs reached $71.3 million.

The second quarter of the year saw Bitcoin's price surge from $75,000 to $112,000, marking nearly 49% gains by May 22nd. However, the momentum slowed, and the price entered a range-bound pattern in June. This pattern, identified as a flag pattern, suggests that if the upper border is breached, Bitcoin's price may retest the $112,000 level soon. Breaking this level could trigger a strong rally.