$BTC surged past the $66,000 mark today, gaining more than 3% in the past 24 hours. The rally is fueled by easing geopolitical tensions, expectations of a shift in U.S. monetary policy, and a fresh wave of institutional interest in digital assets.
One of the key drivers is the recent announcement of a ceasefire between Israel and Iran, which was made public Tuesday evening U.S. time. Global markets responded positively, with risk assetsâincluding cryptoâseeing immediate inflows.
âThe easing geopolitical risks have created a strong tailwind for risk assets like Bitcoin,â said Daniel Tan, senior analyst at CryptoInvest Asia. âCrypto markets are highly sensitive to global tensions, and when those tensions ease, capital tends to flow back in.â
In addition, growing speculation that the U.S. Federal Reserve may soon pivot toward interest rate cuts has further boosted investor appetite.
âThe market is increasingly pricing in whatâs being called a âFed pivot,â which historically benefits speculative assets,â explained Maya Indrawan, a macroeconomist at Global Chain Analytics. âIf liquidity loosens, Bitcoin could see major upside.â
Meanwhile, institutional interest is also picking up. A major $1 billion merger was announced by ProCap Financial to create a Bitcoin treasury firmâa move that has sparked optimism among professional investors.
âWhen institutions begin allocating portions of their treasury into Bitcoin, itâs a signal that crypto is being treated more seriously as a long-term store of value,â said Kevin Liu, strategy director at BlockForge Capital.â
Other cryptocurrencies followed Bitcoinâs lead today.
$ETH , Solana, and
$XRP each saw gains of 2%â5%, while the total crypto market capitalization rose by over 4% from the previous day.
Still, analysts advise caution given the inherent volatility of the crypto market.
âThese sharp moves are exciting, but they should always be approached with proper risk management,â Daniel Tan added.
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