The Bitcoin price is currently fixed flat at around $103,600 and $105,500. This followed that there has been an enormous inflow into Bitcoin exchange-traded funds (ETFs), which have managed to attract more than $11.2 billion since mid-April. Geopolitical tensions led by the Israel-Iran conflict are behind this price, observers note.
Bitcoin ETF Inflows and Market Dynamics
At the close of June 18, Bitcoin saw a huge $389.5 million spot ETF inflow, the eighth consecutive day of inflows. Investors such as BlackRock and Fidelity are starting this feat, which is a tell of robust institutional buying.
In spite of such inflows, the price of Bitcoin has risen nominally by a mere 10% or so over the same time span. Analysts have reasoned that the selling pressure from long-term holders would be undoing the impact of ETF demand. This is based on reports that document first-time buyers as strong sellers and perhaps exerting bearish pressures on prices.
Geopolitical Factors Influencing Bitcoin Price
Geopolitical tensions, in this instance, the recent tension between Israel and Iran, are among the most powerful price drivers in Bitcoin. Reports confirm that the recent stability of the prices of Bitcoin by records is the way it was during previous geopolitical tensions. The ongoing ETF inflows and low-scale military interventions have witnessed the stability of the price of Bitcoin.
The Role of Ancient Bitcoin Supply
Analysis from Fidelity shows a sudden spike in Bitcoin which is “ancient supply,” or ten or more years of no movement. As of June 8, more than 3.4 million BTC, or 17% of outstanding supply, fit the bill. It matters because it would suggest that long-hold holders are digging in deeper, perhaps cementing Bitcoin’s scarcity narrative.
Also, the growing bigger ageing supply is replacing new Bitcoin supply at 450 BTC per day. This situation may affect market dynamics, as the growing ancient supply can influence price movements and investor sentiment. The law of history states although such a rise in old supply can be a sign of dearth, it may not always mean more prices in the short term.
The market is already functioning in an environment that includes institutional bulls as well as complete age-old supply growth. Firm as investors are to such a trend, the interaction between these two forces will most likely have the strongest influence on the way the price of Bitcoin will act in the near future.
