Bitcoin Price Soars Above $65K Amid Shift in Institutional Investor Sentiment

The Bitcoin price has surged above $65K following the announcement of an official deal between the US and Iran, according to CryptoRank. However, the key driver behind this surge is not necessarily the geopolitical development but rather a shift in institutional investor sentiment as indicated by positive spot ETF flows.

After five straight days of outflows, spot Bitcoin exchange-traded funds (ETFs) returned to net inflows on Friday, attracting $85.8 million in capital. This reversal gives traders a fresh data point after several sessions in which institutional demand appeared softer and outflows kept pressure on the market narrative.

The key player behind this influx of capital is BlackRock's IBIT, which attracted around $35 million, while Fidelity's FBTC added about $42 million to its coffers. This fresh buying helped offset lingering pressure from products that have continued to see weaker demand or redemptions.

It's essential to note that one day of inflows does not change the broader trend by itself. However, the return to positive ETF demand gives Bitcoin bulls something concrete to point to after several days in which the institutional flow story had turned negative.