After a dramatic weekend driven by geopolitical unrest, Bitcoin is back in recovery mode. Following U.S. President Donald Trump’s announcement of a “total ceasefire” between Israel and Iran, BTC surged past $106,000, reversing Sunday’s dip below $98,500, the lowest in over a month.
The sudden recovery wasn’t just about peace talks. Traders are now betting on U.S. interest rate cuts, with the CME FedWatch tool showing a 53% chance that rates could fall to 3.75% or lower by November. That’s good news for risk-on assets like Bitcoin, which thrive on looser monetary policy.
Despite the recent $193 million in long liquidations, Bitcoin’s open interest remains robust at $68 billion. This signals continued institutional interest, even in the face of macro turbulence.
Bitcoin’s hashrate fell by 8% last week, prompting concerns over mining disruptions, particularly in regions like Iran, where unofficial mining is rumored to consume up to 2GW of electricity. However, analysts like Daniel Batten see no reason to panic. Similar drops occurred during U.S. weather events, like the April storms that slashed hashrate by 27%.
Crypto investment funds posted $1.24 billion in inflows last week, the tenth straight week of gains. The U.S. led the charge, with Bitcoin alone attracting $1.1 billion. Even as prices corrected, institutional buyers kept the faith. Short-Bitcoin products saw $1.4 million in outflows, underlining a bullish tilt.
Adding more fuel to the fire, Trump Media just greenlit a $400 million stock buyback while filing to launch a dual Bitcoin and Ethereum ETF under the Truth Social brand. The proposed ETF would allocate 75% to Bitcoin and 25% to Ethereum, pending SEC approval. Combined with its $2.3 billion in fresh capital and crypto ambitions, the company’s moves are adding to the overall bullish tone in the market.
With institutional flows strong, geopolitical fears easing, and Trump’s ETF push catching eyes, the road to $110,000 might not be far off. All eyes are now on Bitcoin’s next move. Bitcoin’s rally got a major push after Michael Saylor’s MicroStrategy dropped a massive $1 billion into BTC. Moreover, this rebound has sparked fresh momentum across the altcoin market too, lifting coins like Ethereum, XRP, Cardano, Polkadot, and even Pi Network. The market saw it as a strong signal, since big players are doubling down on Bitcoin.
The Crypto market reacted sharply to the news of military operations against Iran’s nuclear sites. Bitcoin dropped below $103,000, and major altcoins fell over 9% in 24 hours. The sell-off was mainly due to increased risk aversion, fears of rising oil prices, and concerns that inflation might prevent the Fed from cutting interest rates. Liquidations surged by 38%, exceeding $682 million.
Some users see this as a buying opportunity, especially for those who follow a dollar-cost averaging (DCA) strategy. One commenter noted that Bitcoin often drops during geopolitical tensions but tends to bounce back harder than traditional markets. However, others warn that volatility could continue if tensions escalate, so caution is advise
Some are moving funds into cold storage or shifting from high-risk altcoins to Bitcoin and Ethereum, which are seen as more resilient. Others are taking profits or waiting for further dips before re-entering the market.
Sentiment is turning positive after the ceasefire announcement. Bitcoin rebounded above $106,000, and Ethereum surged 9%. Many expect further recovery, especially with expectations of U.S. interest rate cuts and continued institutional inflows. However, volatility remains high, and some users are still cautious about re-entering the market
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