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Bitcoin edges lower while holding most gains as institutional demand returns
Bitcoin (BTC) edged lower on Tuesday but retained most of its recent gains, reclaiming the 50-day exponential moving average (EMA) at $64,300 at the time of writing after rising 2.5% in the previous session.
The recovery was supported by renewed institutional demand, with exchange-traded funds recording inflows of more than $137 million on Monday. However, persistent tensions in the Middle East continue to weigh on risk sentiment, limiting Bitcoin's ability to extend its gains.
Institutional demand returns
Institutional demand for Bitcoin started the week on a positive note, with CoinGlass data showing that spot Bitcoin ETFs recorded $137.30 million in inflows on Monday, ending a three-day streak of outflows that began last week.
On the corporate front, Strategy announced on X on Monday that it had increased its US dollar cash reserves by $150 million, bringing its total reserves to $4.80 billion.
The company also announced the repurchase of $132 million worth of STRC shares under its digital credit securities repurchase program.
Meanwhile, the company neither bought nor sold any Bitcoin during the past week, leaving its total holdings unchanged at 840,447 BTC.
These developments suggest that Strategy is placing greater emphasis on strengthening liquidity and managing its capital structure amid continued market uncertainty.
Middle East tensions limit Bitcoin gains
The United Kingdom Maritime Trade Operations (UKMTO) said on Tuesday that a vessel was struck by an unidentified projectile while sailing outbound through the Strait of Hormuz, causing damage to its engine room and leaving one crew member injured. The Omani Coast Guard provided assistance to the remaining crew.
US President Donald Trump said on Monday that he did not want to renew the expired agreement with Iran.
Meanwhile, Iranian Foreign Ministry spokesman Esmail Baghaei said an agreement remained out of reach due to security complications and the "disruptive behavior of destructive elements," adding that the United States must lift its blockade.
These developments are keeping uncertainty elevated over the outlook for tensions in the Middle East and could undermine prospects for a peace agreement between the United States and Iran.
This could weaken investors' risk appetite and increase demand for safe-haven assets such as the US dollar, potentially limiting Bitcoin's ability to extend its recovery.
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