Resurgent U.S.-Iran hostilities send bitcoin lower even as ETF flows show demand

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"Markets have been pricing in regulatory uncertainty for years; every step toward clarity on how digital assets are classified and overseen reduces that discount and makes the asset class easier for institutional capital to underwrite," Dhillon added. Traders will be watching Tuesday's CPI release and Wednesday’s PPI for signals on the Federal Reserve’s next move. Stay alert! Profit-taking, MidEast hostilities drag crypto lower after bullish week (CoinDesk): The crypto market pulled back during Asian and European hours on Monday, with bitcoin falling to $63,100. The drops reflected renewed Middle East tensions as Iran and the U.S. fought over control of the Strait of Hormuz. Bitcoin’s BIP 110 fork deadline nears with miner support at zero (CoinDesk): A proposal to purge non-financial data from the Bitcoin blockchain is heading toward a hard deadline in early August, and the initial support it has gathered from miners is less than 1%. Oil gains over 2% as fresh military strikes threaten Hormuz shipments (Reuters): Oil prices surged more than 2% after attacks intensified in the Middle East, renewing concerns of shipments through the Strait of Hormuz. Brent crude futures were priced at $77.68, and West Texas Intermediate at $73.00.

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Geopolitical tensions between the US and Iran have strengthened safe-haven demand, leading to a decline in Bitcoin. Despite steady inflows into Bitcoin spot ETFs, Middle East risks have triggered market risk aversion. Investors should prepare for increased volatility until geopolitical uncertainties subside.

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