Bitcoin Rebounds

Bitcoin rose to around $65,000 in mid-June, its highest level in two weeks, rebounding from recent lows that saw it fall to as low as $59,000, supported by improved risk sentiment following reports that the US and Iran had reached a peace deal. Both countries said they had agreed to end the nearly four-month conflict and reopen the Strait of Hormuz, with the agreement set to be signed later this week. Earlier this month, Bitcoin came under selling pressure, sliding to its lowest level since October 2024 after Strategy Inc., one of the largest corporate Bitcoin holders and widely viewed as a proxy for the cryptocurrency under its digital asset treasury model, sold part of its holdings, a move that heightened investor sensitivity. The decline also coincided with a shift in institutional capital toward AI-related stocks. Meanwhile, spot Bitcoin ETFs continued to record substantial outflows, while institutional demand remained subdued.

The Bitcoin touched 59850.00 against the BTC, the highest since October 2024. Over the past 4 weeks, Bitcoin US Dollar lost 26.41%, and in the last 12 months, it decreased 42.6%.

Bitcoin extended its decline to as low as $61,000 in early June, its weakest level since before the Iran conflict escalated in late February, before trimming losses to around $64,000. The token has dropped about 16% since Strategy Inc. sold roughly $2.5 million of its large Bitcoin holdings. The firm is one of the biggest corporate Bitcoin holders and is widely seen as a proxy for the cryptocurrency under its digital asset treasury model, making the sale particularly sensitive for investors, even though Saylor had previously suggested selling could be an option. Sentiment was further weighed by lingering geopolitical tensions in the Middle East, as US-Iran negotiations remain unresolved. The selloff also highlighted Bitcoin’s divergence from tech stocks, which were hitting record highs. Bitcoin is now down more than 50% from its peak above $126,000 last October. US-listed Bitcoin ETFs have also seen nearly $4 billion in outflows over 12 consecutive sessions, marking a record streak.