Bitcoin Volatility Spikes Amid US-Iran Deal Uncertainty

Bitcoin's price has been experiencing volatility due to uncertainty surrounding the US-Iran deal. Despite institutional and corporate demand supporting its recovery, traders should be cautious of potential spikes in volatility.

The largest cryptocurrency by market capitalization is trading slightly down at around $70,400 on Tuesday after recovering over 4% in the previous day. This comes as spot Exchange Traded Funds (ETFs) recorded fresh inflows and Strategy added more BTC to its reserves on Monday.

Institutional demand started the week on a positive note with spot Bitcoin ETFs recording inflows of $167.23 million on Monday, breaking a three-day streak of withdrawals in the previous week. On the corporate side, Michael Saylor announced that Strategy had purchased another 1,031 BTC for $76.6 million following its purchase of 22,337 BTC the previous week.

Bitcoin price is trading slightly down at around $70,400 on Tuesday after recovering over 4% in the previous day. The near-term bias remains mildly bearish as price remains limited within a parallel channel, trading just below the upper boundary near $72,600, while the lower bound comes in around $65,900.

Traders should closely watch developments surrounding the fragile US-Iran peace deal. Any escalation would dampen investor confidence, weighing on risky assets such as Bitcoin. On the contrary, a breakthrough is likely to boost investor confidence, supporting riskier assets.