Bitcoin (BTC) is showing some resilience.
The price of the largest cryptocurrency by market capitalization is holding above the key support level of $65,000 U.S. as stocks fall and crude oil prices spike.
U.S. equity markets are in the red on July 23 after financial results from Alphabet (GOOGL) and Tesla (TSLA) revealed increased spending on artificial intelligence (A.I.).
The technology-heavy Nasdaq (NDAQ) exchange is down nearly 300 points or 1%. At the same time, markets are being pressured by a continued rise in oil prices.
Brent crude, the international standard, is up another 5% and trading at $99 U.S. a barrel, near the key level of $100 U.S. as fighting rages on between Iran and America.
West Texas Intermediate (WTI) crude oil, the U.S. benchmark, is also up 5% and trading at just over $90 U.S. a barrel.
Despite the turmoil, Bitcoin is managing to stay above $65,000 U.S., a level it had struggled to breach since early May of this year.
For most of the past two months, the price of BTC had been rangebound and trading between $60,000 U.S. and $65,000 U.S. but struggling to break above resistance at the high end.
In late June, Bitcoin fell to $58,000 U.S., its low for the year.
Analysts say that Bitcoin is exhibiting some strength as institutional investors gradually return to cryptocurrencies after selling digital assets in the year’s second quarter.
Data shows that hedge funds, pensions, and other institutions are again buying exchange-traded funds (ETFs) that track the spot price of Bitcoin and Ethereum (ETH).
However, capital inflows to ETFs are small compared to previous allocations, averaging $900 million U.S. over the past trading week.
In June of this year, spot Bitcoin ETFs recorded $4.5 billion U.S. in capital outflows.
BTC is trading at $65,150 U.S. early on July 23.
