Bitcoin price holds steady above $62K after geopolitical shock

Despite a geopolitical shock last week, the Bitcoin price has managed to hold above $62.000 and is recovering towards $64.000. This is according to the weekly market update from crypto market maker Wintermute. At the time of writing, Bitcoin stands at $64.000, up 2.3% over the past 24 hours.

Bitcoin is available at OKX and Bybit.

Weak hands largely shaken out of the market

According to Wintermute, the price recovery indicates that weaker market participants have largely had their positions liquidated. The geopolitical turmoil did not lead to a sustained sell-off, pointing to a stronger base beneath the current price. Bitcoin is thus building a bottom while the market is coming into the hands of stronger buyers.

The sale of 3,588 BTC by Strategy to fund dividends also caused limited market disruption. Despite Strategy having previously sold shares without directly buying Bitcoin, the impact on the market remains relatively small. The news surrounding Strategy’s trading activity is attracting a lot of attention, but for now it does not appear to be putting significant pressure on the price.

ETF inflows return after eight weeks of outflows

A notable signal comes from the crypto ETF market. After eight consecutive weeks of outflows, $282 million is now flowing back into digital asset ETFs. Earlier, there were already signs of a recovery in ETF flows, but Wintermute’s latest figures confirm that the trend is continuing.

One risk factor Wintermute mentions is the rising probability of an interest rate hike in September. Due to rising oil prices, the chance of such a hike has increased to 61%. Tuesday’s CPI release thus becomes a crucial data point: it will largely determine whether the recovery in Bitcoin and the broader crypto market continues or stalls again. Investors are therefore keeping a close eye on the inflation figures.