Despite the increasing geopolitical risks, Bitcoin (BTC) has managed to hold above the $106,000 level, sending a message of resistance to the market.
Starting the new week with an increase, Bitcoin is trading above the $106,000 level on Monday morning. The current outlook of the cryptocurrency shows that the impact of geopolitical uncertainties prevailing in the markets is limited. The BTC 'Fear and Greed Index' is at a level of 61, indicating that investors are optimistic but cautious.
According to BTC Markets Crypto Analyst Rachael Lucas, the recent Israeli attacks on Iran's nuclear facilities caused a temporary 4% drop in Bitcoin prices. Lucas commented, 'Although Bitcoin is sensitive to risk-off situations, investors are quickly compensating for losses thanks to the return to BTC to hedge against geopolitical risks.'
Among the key factors determining the direction of Bitcoin prices are institutional inflows, macro data, and geopolitical risks. Especially last month, the net inflow of $5.23 billion into spot Bitcoin ETFs created strong bullish expectations among investors. Vincent Liu, CIO of Kronos Research, stated that there is strong global liquidity and institutional demand in the market, and that if uncertainties are resolved, BTC could gain momentum towards a new peak.
Eyes are on the Fed meeting!
This week's most important agenda item for the crypto market will be the Fed's interest rate meeting on Tuesday and Wednesday. According to the CME Group FedWatch tool, the likelihood of the Fed maintaining the current interest rate (4.25-4.50%) is at 96.7%.
However, President Donald Trump's pressure on Fed Chairman Jerome Powell to lower interest rates by 1% may shake up the markets. In addition to these developments, statements from the SEC and the Treasury Department regarding ETFs or stablecoins will also be closely monitored by investors.
On the other hand, Ethereum (ETH) increased by 1.48% in the last 24 hours, reaching $2,569. While Bitcoin dominance remains stable around 65%, it is noted that ETH may gain further strength due to institutional inflows alongside the DeFi summer season.
