Bitcoin breaks $64,000 on ETF inflows and Middle East peace optimism

ETF Momentum Builds

Friday recorded the largest daily inflow into U.S. spot Bitcoin ETFs since May, with net inflows totaling $85.9 million. The last time inflows exceeded this level was on May 14. The surge reflects growing institutional interest after a period of relative weakness.

Not all inflows tell the same story, though. A Standard Chartered analyst said that ETF holders have anecdotally been liquidating their positions to free up cash to fund other opportunities, including the SpaceX initial public offering. Still, the net positive flow suggests broader conviction among institutions.

Geopolitical Tailwind

Sentiment has also been supported by further positive developments on the geopolitical front in the Middle East. Pakistan's Prime Minister signaled progress on a potential Iran peace accord, saying "We are closer to a peace deal than ever before. With finalisation likely within the next 24 hours, Pakistan is preparing for the electronic signing of the agreement immediately afterwards, followed by technical-level talks next week."

De-escalation narratives typically support risk-on sentiment across markets, including crypto. Bitcoin traders have historically responded positively to geopolitical relief.

Weekly Inflection Point

Bitcoin is currently up around 1% on the week. If it maintains those gains through the weekly close, it would break a streak of four consecutive weeks of losses. The largest cryptocurrency by market capitalization is up more than 1% over the past 24 hours and is now up over 8% from its June low of just above $59,000.

Whether this momentum holds depends on both ETF flows and geopolitical follow-through. For now, the confluence of institutional buying and easing tensions has given Bitcoin its clearest directional bias in weeks.