Bitcoin reclaimed positive ground on June 12, climbing to roughly $63,700 and showing a 1% gain over the past day, based on data from crypto.news. The leading cryptocurrency also posted a weekly increase of about 1.66%, signaling a rebound from a recent dip below the $60,000 threshold.
The uptick followed signals that tensions between the United States and Iran could be easing. Reports indicated that former President Donald Trump canceled a planned strike on Iran and suggested a diplomatic resolution might be close at hand. This news helped alleviate some of the risk aversion that had gripped markets earlier in the week.
Oil prices responded by falling, with Brent crude sliding into the mid-$80s range. That decline eased worries that rising energy costs would exacerbate inflationary pressures, a factor that had been weighing on risk assets including crypto. Lower geopolitical risk generally supports assets like Bitcoin and major altcoins by reducing the likelihood of hawkish central bank responses.
Ethereum saw a similar boost, trading near $1,671 with a nearly 1% daily uptick. The token held above the $1,650 support level after a lackluster week for spot Ethereum exchange-traded funds. BNB hovered around $605, while Solana gained almost 2% to reach about $66.69. XRP added 3% to trade near $1.14, and Dogecoin edged up to around $0.086. Among the larger digital assets, Hyperliquid rose to $59.17, although it remained weaker over the past seven days. TRX was the notable laggard, sliding nearly 3% on the day and over 3.8% for the week.
Data from Glassnode indicated that the selloff triggered a temporary spike in options volatility. As Bitcoin broke below the February low, at-the-money implied volatility briefly surged to 65% before retreating. Front-end volatility later settled back near 40%, suggesting that options traders did not anticipate an extended downturn. One-week skew, which measures demand for downside protection, jumped from 12% to 28% during the decline but subsequently normalized to 12%, indicating that hedging activity subsided as prices stabilized.
Despite the rebound, institutional demand remained cautious. Spot Bitcoin ETFs recorded net outflows of $19.03 million on June 11, marking the fifth consecutive day of redemptions. Similarly, spot Ethereum ETFs saw $15.89 million in net outflows, extending a three-day streak of withdrawals. These flows suggest that institutional investors are still wary, and the recovery may face headwinds if ETF demand does not improve.
The broader market still faces several pressures, including a hawkish Federal Reserve, ongoing geopolitical uncertainties, and a recent unwinding of leverage. Some analysts warned that the rebound could be tested again. For instance, Crypto Rover noted that historical Bitcoin cycles suggest bottoms often occur between September and October of the fourth year, implying that further volatility may lie ahead. Another trader, Kaz, highlighted that Bitcoin has typically reacted poorly around FOMC meetings during bear markets, pointing to June 17 as a potential date for another lower high if the current bounce fails to sustain.
Data from CryptoQuant revealed that both whales and retail investors increased their Bitcoin inflows to Binance as prices fell below $60,000. Whale inflows averaged 5,280 BTC over 90 days, while retail inflows reached about 410 BTC. These movements often reflect fear, as coins transferred to exchanges are more readily sold. The analyst Darkfost compared the behavior to early February, when similar inflows accompanied a drop below $60,000.
For now, the critical support level remains around $60,000. Holding above that zone would support the view that the latest selloff was contained. A more robust recovery would require Bitcoin to reclaim $65,000 and build momentum toward the $68,000 to $70,000 range. Until then, the current bounce appears to be a relief rally within a fragile market environment.