Markets briefly escaped the impact of the Iran conflict, and the price of Bitcoin returned to above $101,000
The price of Bitcoin briefly fell to $9,8385 over the weekend as investors reacted to the US and Israeli airstrikes on Iran's nuclear facilities. But it quickly rebounded in the early hours of Monday, and BTC is currently trading above $101,000, recovering the weekend's losses.
Meanwhile, the price of gold fell back to $3,364 after hitting $3,398, while oil prices have also given up early gains and are only slightly higher.
The military operation was carried out by the United States and Israel, with more than 125 aircraft attacking Fordow, Natanz and Isfahan. Iran responded with missile and drone attacks on Israeli cities and threatened to attack US military bases in the Gulf.
Subsequently, Iran's foreign minister went to Moscow for emergency consultations, and President Trump said the United States would suspend further military operations. A final decision on the next move is expected to be made within two weeks, and European leaders called on all parties to exercise restraint and remain open to restarting diplomatic negotiations.
Despite the escalation, markets quickly recovered. Kobeissi Letter noted on X that "markets still expect the war to be short-lived," while mentioning that oil prices are still well below the historical levels of the Strait of Hormuz disruption.
Crypto markets are showing a convergence trend, and although Bitcoin was sold off at its peak over the weekend, traders are starting to return to the market as risk appetite recovers. Pav Hundal said that the market saw a lot of choppy trading a few hours after the US airstrike on Iran's nuclear targets, and trading volume remained high.
Hundal believes that if tensions in the Middle East are eased, investor confidence will return and prices will begin to rise. However, he also pointed out that no one can predict exactly what will happen after the Middle East, which brings great uncertainty to traders.
In summary, Bitcoin is an emerging asset class, and the market's reaction to reducing risk after Sunday's events is not unreasonable, but it is another reminder that the nature of the cryptocurrency market is still accompanied by high volatility.
Do you think Bitcoin's current price rebound is a flash in the pan, or does it indicate a stronger upward trend? Leave your opinion in the comments section!
