ABU DHABI, United Arab Emirates— Bitcoin rose to a three-week high of $73,800 last week before retreating as renewed geopolitical tensions weighed on sentiment, according to market commentary from eToro.
Simon Peters, a crypto analyst at eToro, said markets were initially supported by news of a temporary two-week ceasefire. Sentiment later weakened after the United States and Iran failed to reach a broader agreement and tensions escalated following a U.S. Navy move to blockade Iran’s ports.
“Geopolitical developments have reintroduced caution into the market after a brief period of optimism,” Peters said.
Investors are now focusing on upcoming U.S. Producer Price Index data for signals on inflation, particularly as higher oil prices could begin feeding into supply chains.
“A stronger-than-expected PPI reading could reinforce expectations that the Federal Reserve may keep rates higher for longer, or even consider further tightening, which could weigh on risk assets, including crypto, in the near term,” Peters said. “Conversely, softer inflation data may support the disinflation narrative and help restore upward momentum in crypto markets.”
Bitcoin has faced resistance in the $74,000 to $76,000 range since February, with upcoming macroeconomic data likely to determine whether a breakout is possible.
Elsewhere in the crypto market, privacy-focused coins led gains for a second consecutive week. Zcash and Dash rose 41% and 34%, respectively, driven by increasing interest in privacy-focused solutions.
Peters said a growing number of influential voices in the crypto sector are advocating for enhanced privacy on blockchain networks, arguing that increasing transparency is pushing some investors toward privacy-oriented alternatives.
In a separate development, Morgan Stanley launched a spot bitcoin exchange-traded fund last week under the ticker MSBT, marking the first such product issued by a major U.S. investment bank.
The fund drew more than $33.8 million in inflows on its first day, with over 1.6 million shares traded. Amy Oldenburg, Morgan Stanley’s head of digital asset strategy, said it was the strongest first-day performance for any ETF launched by the firm.
With more than 16,000 financial advisers overseeing about $6.2 trillion in client assets, the bank could drive significant inflows into the fund. Bloomberg ETF analyst Eric Balchunas estimated the ETF could reach $5 billion in assets under management within its first year, potentially placing it among the top five spot bitcoin ETFs globally.
Morgan Stanley has also filed for spot ether and spot solana ETFs, which could launch later this year.