Bitcoin Reclaims $64,000 as ETF Demand Shows Signs of Recovery

Bitcoin traded near Rs. 61.1 lakh on Tuesday as the cryptocurrency market recovered amidst improving US spot Bitcoin ETF demand and expectations that the Federal Reserve will keep interest rates unchanged in September. Ethereum (ETH) was trading near Rs. 1.8 lakh, reflecting mixed movement across major cryptocurrencies. According to market participants, weaker US retail sales and signs of a softer labour market have supported risk appetite, although rising Bitcoin balances on exchanges have raised concerns about potential selling pressure. As per CoinMarketCap data, Bitcoin traded near $64,200 (roughly Rs. 61.4 lakh) and Ethereum (ETH) was trading near $1,900 (roughly Rs. 1.8 lakh).

The world's largest cryptocurrency gained 0.69 percent over the last 24 hours, according to Gadgets 360's price tracker. Analysts said preliminary US spot Bitcoin ETF inflows on August 17 indicated an improvement in institutional demand. However, geopolitical tensions around the Strait of Hormuz and higher potential selling pressure from rising exchange balances continue to keep the broader market cautious.

Major altcoins traded with mixed momentum on Tuesday.

Binance Coin (BNB) was priced around $604.34 (roughly Rs. 57,817), while Solana (SOL) traded near $75.91 (roughly Rs. 7,262). XRP hovered around $1.00 (roughly Rs. 96), and Dogecoin (DOGE) traded near $0.070 (roughly Rs. 6.7), indicating selective participation among large-cap cryptocurrencies.

Lower Rate-Hike Odds Boost Crypto Sentiment

Linking Bitcoin's recovery to changing Federal Reserve expectations, Prateek Gupta, Head of Business, Mudrex, said, “Weak retail sales and signs of a softer labour market have supported the shift in rate expectations. However, on-chain trends remain a concern. Santiment data shows investors have returned 84 percent of the Bitcoin withdrawn from exchanges earlier this month, pushing exchange balances back to 1.33 million BTC and suggesting higher potential selling pressure.”

Assessing Bitcoin's recovery alongside geopolitical and regulatory developments, the CoinSwitch Markets Desk said, “The broader market remains cautious as tensions between the US and Iran around the Strait of Hormuz continue to keep oil prices elevated. Crypto flows have also been a factor to watch, with spot Bitcoin ETFs recording around $390 million (roughly Rs. 3,731 crore) in net outflows last week. The market is now looking towards the next set of US regulatory developments, including discussions between policymakers and crypto industry leaders and the delayed CLARITY Act.”

Turning to the latest institutional flows and Federal Reserve outlook, Vikram Subburaj, CEO, Giottus.com, said, “Expectations that the Federal Reserve will keep rates unchanged in September are supporting risk appetite. A Reuters poll showed that 90 percent of economists expect a September hold. Markets are also awaiting the Fed's latest meeting minutes for further policy signals [...] Investors should avoid chasing short-term rallies. Staggered buying, low leverage and disciplined position sizing remain preferable until stronger ETF and spot demand confirms a sustained breakout.”

Overall, analysts said rising exchange balances, geopolitical tensions and cautious institutional flows could limit further gains. Bitcoin's ability to hold above $64,000 (roughly Rs. 61.2 lakh) and move through resistance near $65,000 (roughly Rs. 62.1 lakh) is expected to determine whether the latest recovery can develop into a sustained breakout.