- Bitcoin has dropped below $108,000 amid rising geopolitical tensions in the Middle East and renewed US-China trade uncertainty, triggering a broader risk-off sentiment.
- Despite the market pullback, institutional demand for BTC remains strong, with continued inflows into spot ETFs and major companies increasing their Bitcoin holdings.
Bitcoin Dips Below $108K Amid Market Turmoil
Bitcoin (BTC) continued its downward correction on Thursday, falling below the $108,000 mark after shedding gains from earlier in the week. The drop followed Wednesday’s bearish close beneath $109,000, as risk-off sentiment intensified across global markets. The primary driver behind this cautious investor mood is escalating geopolitical tensions—particularly reports indicating Israel is preparing an imminent attack on Iran.
In parallel, the Russia-Ukraine war saw renewed violence, further compounding investor anxiety. A surge in safe-haven assets like gold, which hit $3,386 per ounce, and oil reaching $69 per barrel, signaled a broader market shift away from riskier investments like cryptocurrencies.
Also read: Bitcoin, Ethereum, and XRP Price Drop: Is a Crypto Market Correction Underway?
Trade Tensions Fuel Market Uncertainty
Adding to the negative sentiment, fresh trade-related uncertainty between the US and China also weighed on Bitcoin. Former President Donald Trump’s threats to impose unilateral tariffs by July 9 dampened earlier optimism sparked by positive US-China trade talks in London. This reinforced a cautious stance among investors and spurred further outflows from high-risk assets like BTC.
Institutional Demand Offers a Glimmer of Hope
Despite the geopolitical and trade-related headwinds, institutional interest in Bitcoin remains strong. Mercurity Fintech Holding Inc. announced an ambitious plan to raise $800 million to build a Bitcoin treasury reserve. Similarly, GameStop revealed plans for a $1.75 billion fundraising initiative after adding 4,710 BTC to its holdings.
Meanwhile, US spot Bitcoin ETFs recorded $164.57 million in inflows on Wednesday alone, marking the third consecutive day of positive movement, according to SoSoValue data. These figures highlight a growing recognition of Bitcoin as a long-term strategic asset among institutional investors.
Technical Outlook: BTC Shows Signs of Weakness
Technically, Bitcoin is trending lower after failing to retest its all-time high of $111,980 earlier this week. BTC is now approaching key support at $106,406, with a close below this level potentially opening the door to the 50-day EMA at $102,471.
The RSI reads 54 and is tilting toward neutral territory, suggesting waning bullish momentum. Likewise, the MACD indicator reflects indecision, though a bearish crossover could confirm the downtrend.
While BTC faces immediate pressure, continued institutional support could provide a floor—and perhaps the fuel for the next breakout.