TLDR
- Bitcoin dropped 1.8% to $62,853 on Monday amid renewed US-Iran hostilities
- Broader crypto prices extended weekend losses, sitting near yearly lows
- Bitcoin ETFs snapped an eight-week outflow streak with $197.4M in weekly inflows
- BlackRock’s iShares Bitcoin Trust led inflows at $291.9M for the week
- Analysts remain cautious, with some expecting further downside into October
Bitcoin fell sharply on Monday as fresh hostilities between the United States and Iran pushed investors away from riskier assets like crypto.
The world’s largest cryptocurrency dropped 1.8% to $62,853.4 by early Monday morning. That puts Bitcoin roughly 50% below its October record high.
The US and Iran exchanged attacks over the weekend, and both countries gave conflicting accounts of the Strait of Hormuz. The US said the waterway stayed open; Iran said it was largely closed.
BREAKING: US oil prices extend gains to nearly +5% on the day as Iran declares the Strait of Hormuz closed again. pic.twitter.com/5APWlLYsQg
— The Kobeissi Letter (@KobeissiLetter) July 13, 2026
Oil prices climbed sharply after the news. That raised fears about energy-driven inflation and what it could mean for interest rates. Higher interest rates tend to reduce demand for assets like Bitcoin that don’t generate income.
Analyst Ted Pillows pointed to weakening spot demand as a key barrier for Bitcoin. He said that until spot buyers step back in, Bitcoin will struggle to reclaim the $65,000 level — a zone it has so far failed to recover.
$BTC has failed to reclaim the $65,000 zone so far.
And the biggest reason is weakening spot demand.
Until spot buyers step in, Bitcoin will have a hard time breaking above $65,000. pic.twitter.com/eTpQfApGls
— Ted (@TedPillows) July 12, 2026
Data from SoSoValue had shown Bitcoin ETFs posting eight straight weeks of capital outflows before last week. Institutional appetite for crypto had been broadly declining.
Bitcoin ETFs Snap Eight-Week Outflow Streak
US-listed spot Bitcoin ETFs recorded $197.4 million in net inflows for the week ended Friday, ending that streak. Most of that came from BlackRock’s iShares Bitcoin Trust ETF, which pulled in $291.9 million.
Outflows from Grayscale, Fidelity’s Wise Origin Bitcoin Fund, and the ARK 21 Shares Bitcoin ETF partially offset those gains.
Monochrome Asset Management CEO Jeff Yew said the inflows may reflect early positioning ahead of the CLARITY Act, a US crypto regulation bill expected in August. He called it a possible sign that long-term investors are preparing for greater regulatory clarity.
Analysts Divided on Recovery
10x Research CEO Markus Thielen said ETF and stablecoin outflows and seasonal patterns in August and September still pose challenges. He noted a pattern where Bitcoin performs better in the first half of the month, then stalls.
The $197.4 million weekly inflow compares modestly to the $8.26 billion pulled from Bitcoin ETFs since May 11.
Real Vision analyst Jamie Coutts said last week that Bitcoin may be entering the later stages of a bear market, with early signs that selling pressure is easing.
Russell Thompson, CIO at Hilbert Capital, said Bitcoin remains in a downcycle and could hit a low around October.
Ether ETFs also ended their eight-week outflow streak, recording $84.42 million in net inflows last week, led by BlackRock and Fidelity funds.
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