Bitcoin is hitting a 50-day high above $95,000 as US inflation, slowing ETF outflows and rising tensions between Iran and the US revive its dual role as a macro asset and geopolitical hedge.
Summary
- Bitcoin rises above $95,000 after a stable CPI eases pressure for aggressive Fed hikes, supporting risky assets and keeping ETF-driven selling in check.
- Tensions in the Middle East and a US warning to leave Iran immediately highlight BTC’s appeal as a censorship-resistant store of value during geopolitical tensions.
- Ethereum, Solana and XRP follow BTC higher as analysts watch ETF flows and the psychologically critical $100,000 level for signs of trend continuation or exhaustion.
Bitcoin rose above $95,000 on Tuesday, marking a 50-day high, according to market data, as traders reacted to US inflation data and escalating tensions in the Middle East.
Bitcoin climbs above $95k
The cryptocurrency’s rise accelerated after a statement from the US State Department warning American citizens to “leave Iran immediately” and prepare for possible communications disruptions. The alert was issued as mass protests continued on Iranian soil and diplomatic rhetoric increased between Washington and Tehran, according to State Department announcements.
Consumer price index data released earlier Tuesday showed U.S. inflation held steady, with prices continuing to rise but not accelerating. The data suggested the Federal Reserve may not need to make aggressive rate hikes in the near term, analysts noted.
Bitcoin had seen a correction in early January, with exchange-traded funds recording significant outflows. Investors who took positions during the October rally closed their positions at a loss, pushing prices toward the typical ETF cost basis, market observers said.
Recent data shows that selling pressure has eased, with global buyers absorbing available supply, while institutional buying in the US has stalled. The Coinbase Premium indicator turned negative but did not indicate capitulation, market analysts said.
The cryptocurrency’s move boosted other digital assets, with Ethereum, Solana and XRP posting gains on Tuesday, according to trading data.
Market participants have characterized Bitcoin’s price behavior as reflecting two characteristics: sensitivity to macroeconomic conditions during stable periods and demand as an alternative asset during geopolitical uncertainty.
The cryptocurrency operates on a decentralized network outside of direct government control, a feature that industry observers say has historically attracted investor interest during periods of global instability.
Analysts are watching ETF flows and geopolitical developments as potential factors influencing near-term price movements, with the $100,000 level identified as a psychological threshold.
