Bitcoin is moving sideways in the $63,000 to $64,000 range after U.S. strikes on Iran and the fallout from Washington-led tensions with China.

On July 17, Bitcoin Magazine reported that bitcoin also fell below its 50-day simple moving average, seen as a benchmark for short-term trends. Japan's Nikkei 225 fell 4 percent on the day and slid more than 10 percent from its June 25 high. Hong Kong's Hang Seng Index and China's Shanghai Composite Index fell 2 percent and 3.1 percent, respectively. Nasdaq futures pointed 1.6 percent lower.

Tensions from the Middle East also added to market unease. Iran's semi-official Fars News Agency, citing authorities in Hormozgan province, reported that U.S. strikes hit 5 bridges in the southern region. A maritime control tower at Chabahar port was also damaged in a separate missile attack. U.S. West Texas Intermediate crude neared $79 a barrel, with gains over 5 trading sessions close to 15 percent.

In Washington, U.S. President Donald Trump released classified information containing allegations of Chinese interference in U.S. elections and claimed China had obtained 220 million voter records. The Chinese embassy denied it. The market saw the dispute as something that could further worsen U.S.-China relations ahead of a meeting scheduled for September between Trump and Xi Jinping, and the Australian dollar weakened against the U.S. dollar.

Some indicators, however, suggested the decline was the result of greater sensitivity to macro variables than geopolitical risk aversion. Nansen research analyst Nicolai Sondergaard (니콜라이 손더가드) cited the June consumer price index released on July 14. Headline inflation was 3.5 percent, below the forecast of 3.8 percent, and core inflation was 2.6 percent, below the forecast of 2.9 percent.

Spot bitcoin exchange-traded fund flows and on-chain activity also backed that view. Over 3 trading sessions this month, spot bitcoin ETFs recorded inflows of $510 million, halting a prior net outflow trend of $2.73 billion. BlackRock's IBIT led the inflows. Around the time of the strikes, there was a net outflow of 18.3 BTC, but it later turned to an average hourly net inflow of 0.67 BTC. At the time of writing, bitcoin was priced at $62,836.