Bitcoin Hovers Near $64,000 Amid Middle East Tensions as ETF Funds Shift to Net Inflows

Bitcoin fluctuated between $63,000 and $64,000 amid U.S.-Iran tensions and Washington political turmoil. The 50-day simple moving average fell below, while the Nikkei 225 dropped 4%, and the Hang Seng and Shanghai Composite fell 2% and 3.1%, respectively. Oil prices approached $79 per barrel, rising 15% in five days. U.S. President Donald Trump accused China of interfering in the U.S. election and claimed China controlled 220 million voter records, which China denied. Markets feared the conflict could worsen U.S.-China relations ahead of Trump and Xi Jinping's September meeting, pressuring the Australian dollar. However, some indicators suggested the decline reflected sensitivity to macroeconomic factors, as Nansen analyst Nicolai Søndergaard noted the June CPI data showed lower-than-expected inflation. Bitcoin ETF inflows and on-chain flows supported the trend, with $510 million flowing into physical Bitcoin ETFs over three days, reversing prior outflows. BlackRock's IBIT led the inflows, with net inflows resuming after initial outflows following the strike.