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Bitcoin (BTC) traded at $62,637.79 at the time of writing, giving back part of this week’s gains as renewed military exchanges between the United States and Iran pushed investors toward defensive assets.
The latest escalation lifted crude oil prices, strengthened the US dollar, and renewed pressure across global risk markets. That left Bitcoin trading just above the $62,500-$62,800 support zone, an area buyers have defended several times during the current correction.
Market sentiment weakened after the United States announced strikes against more than 80 targets in Iran, including military infrastructure and naval assets near the Strait of Hormuz. Iranian officials responded with fresh military action, raising concerns that the conflict could expand beyond the recent ceasefire framework.
BREAKING: US announces it has hit over 80 targets with precision munitions in tonight's strikes on Iran, including more than 60 IRGC speed boats in and near the Strait of Hormuz, per CENTCOM.
US strikes also targeted Iranian air defense systems, command and control networks,… pic.twitter.com/bUEkJGo374
— The Hormuz Letter (@HormuzLetter) July 8, 2026
The geopolitical backdrop quickly spread into financial markets. Oil prices climbed as traders assessed potential disruption around one of the world’s busiest energy shipping routes, while the U.S. Dollar Index (DXY) remained above 101, signaling continued demand for the dollar as investors sought safe-haven assets. Rising energy prices also revived concerns that inflation could stay elevated for longer, reducing expectations for faster interest rate cuts. Higher borrowing costs typically reduce demand for risk assets because investors can earn more attractive returns from lower-risk investments such as government bonds.
Bitcoin moved alongside growth assets after the renewed military exchanges, reinforcing its recent correlation with technology stocks during periods of macro uncertainty. US equity futures also weakened, with S&P 500 futures falling 0.6% while Nasdaq 100 futures dropped 2.1% as investors rotated toward traditional defensive assets such as the US dollar.
The latest decline followed another rejection near the $64,000 resistance area, extending Bitcoin’s inability to reclaim a level that has capped multiple recovery attempts over recent weeks.
From a technical standpoint, the broader trend remains cautious. Bitcoin continues to trade below its 50-day ($69,721), 100-day ($70,431), and 200-day ($82,112) moving averages (MAs), indicating that the broader trend remains under selling pressure despite several short-lived rebounds. Until BTC reclaims at least the 50-day average, rallies are likely to face selling pressure before a broader trend reversal can be confirmed.
Momentum indicators offer a mixed picture. The relative strength index (RSI) hovered around 49, reflecting neutral market conditions with neither buyers nor sellers holding a decisive advantage. Meanwhile, the moving average convergence/divergence (MACD) remained above the zero line, suggesting buying momentum has weakened without shifting decisively bearish.
Analyst Ted Pillows identified the $62,500-$62,800 region as an important support band. A sustained daily close below that range could shift attention toward the $60,000 psychological level, which has acted as a key demand zone throughout the current correction.
Meanwhile, market analyst Martini Guy noted that Bitcoin also failed to reclaim $63,500, arguing that a loss of nearby support could expose the $61,000 region before traders begin watching the $59,000 to $59,500 area.
Bitcoin is starting to lose momentum here.
We rejected the $63,500 reclaim and have now slipped back below it.
That was the level I wanted to see hold if this move was going to continue.
The renewed US strikes on Iran have also added another layer of uncertainty across global… pic.twitter.com/54HZmU6Yk3
— That Martini Guy ₿ (@MartiniGuyYT) July 8, 2026
Short-term price weakness hasn’t been matched by institutional positioning.
According to SoSoValue data, US spot Bitcoin exchange-traded funds (ETFs) recorded another day of net inflows on July 7, extending their inflow streak to three consecutive trading sessions. Earlier this week, the funds also attracted more than $265 million in fresh capital, suggesting long-term investors continue adding exposure despite heightened geopolitical risk.
According to SoSoValue data, spot Bitcoin ETFs recorded $21.435 million in net inflows on July 7 (ET), extending their net inflow streak to three consecutive days. Spot Ethereum ETFs recorded $26.925 million in net inflows, marking four consecutive days of net inflows. pic.twitter.com/aqkjen8Cly
— Wu Blockchain (@WuBlockchain) July 8, 2026
The contrast highlights that institutional positioning has remained steadier than short-term price action. Spot prices have struggled to regain higher resistance levels, yet ETF demand has remained positive instead of reversing into sustained outflows.
Another factor supporting sentiment is the market’s muted response to Strategy’s latest Bitcoin sale. Strategy’s first Bitcoin sale announcement last month triggered a much sharper negative reaction across the market. This time, Bitcoin briefly advanced toward $64,600 before broader macro developments reversed the move. VanEck’s head of digital assets research, Matthew Sigel, also noted that the transaction didn’t reduce Strategy’s previously announced $1.25-billion Bitcoin monetization program because the sale funded preferred stock dividends rather than its USD reserve.
Macro developments continue to dominate short-term price action. Bitcoin has yet to recover $64,000, while the $60,000 support area remains the key downside level as traders monitor geopolitical developments and upcoming US economic data.
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