After a tense weekend — the US bombing Iranian nuclear facilities and the effectiveness of the ceasefire agreement between Israel and Iran — Bitcoin broke through $106,000 on Wednesday (June 25), surpassing the price level during Israel's airstrike on Iran earlier this month. The easing of tensions has driven high-confidence buying, technical breakthroughs, and strong on-chain accumulation, with the CD20 index also rising nearly 1%.
Meanwhile, Ethereum rose 4%, breaking through $2,450. After Trump announced the ceasefire in the Middle East, institutional buying resumed, and on-chain buying was strong.
The easing geopolitical situation supports expectations of Bitcoin's rise
According to CryptoQuant writer Amr Taha in a Quicktake article, driven by a series of macroeconomic and geopolitical events, Bitcoin is likely to restart its upward trend. He emphasized that several positive signals may help push this crypto asset closer to its historical highs.
One of the most critical events is US President Trump announcing that Israel and Iran have reached a ceasefire agreement. This agreement eliminated the threat of Iran closing the Strait of Hormuz, an important channel for global oil supply.
The ceasefire agreement had an immediate positive impact on global stock markets, with the S&P 500 index breaking through 6,000 points for the first time since February 2025. This trend reflects that as geopolitical risks decrease, investor confidence is warming up.
Meanwhile, oil prices fell by 14%, further strengthening deflationary expectations. Lower energy prices help reduce production and transportation costs, thereby easing overall inflation pressures.
Taha summarized: "The significant outflow of cryptocurrency funds from Binance, falling oil prices, strong breakthroughs in US stocks, and the easing of the Middle East situation — multiple factors combined create an ideal environment for Bitcoin's rise. As geopolitical risks diminish, inflation declines, and the macro market stabilizes, Bitcoin is in a favorable position for re-upward movement."
Bitcoin whales quietly increase their holdings
Meanwhile, according to an analysis by another CryptoQuant writer, Mignolet, Bitcoin 'whales' — wallet addresses holding large amounts of Bitcoin — seem to be quietly increasing their holdings in preparation for a potential breakout. He noted that since Bitcoin bottomed out in April, whale holdings have continued to grow.
Mignolet emphasized that during periods of low market attention or high panic, whales often begin to buy, which often signals an impending market reversal. Historical data also supports this view, showing that significant accumulation usually occurs before a substantial price increase.
Bitcoin welcomes a strong quarter
Senior Crypto Analyst Titan of Crypto stated today on platform X that Bitcoin is about to close a strong bullish monthly line, further strengthening its long-term upward trend.
Multiple on-chain and technical indicators also support Bitcoin's further rise. For example, Bitcoin's Binary CDD shows that long-term holders still choose to hold their coins, indicating their high confidence in Bitcoin's long-term value.
Meanwhile, during the consolidation period of Bitcoin between $100,000 and $110,000, short positions are rising. This situation increases the possibility of a 'short squeeze', which may drive Bitcoin to new highs.
Why did the crypto market rebound so quickly?
Part of the reason for the synchronized rebound of the crypto market and traditional markets is the increasing correlation between the two.
A recent report from Glassnode and Avenir Group noted: "Bitcoin's sensitivity to traditional asset classes and macroeconomic indicators has significantly evolved over recent market cycles, reflecting its increasing integration into the broader macro-financial system." The report states that institutional-level infrastructure has reshaped how capital participates in the Bitcoin market, with behavior increasingly dominated by structural liquidity, long-term allocation, and compliant channels.
This institutional support was once again demonstrated this week: Pythagoras Investments' capital raising and investment strategy director Semir Gabeljic stated, "Bitcoin ETFs attracted $1.1 billion in inflows last week, and today alone $350 million," driving the market upward.
Fractal Bitcoin core member Spencer Yang pointed out that Bitcoin's ability to quickly shake off war concerns is because the Middle East conflict does not fundamentally affect the asset. He added: "All the Bitcoin indicators that investors care about remain solid, and overall market sentiment is still optimistic."
He also mentioned: "The upgrade of the BRC-20 protocol, along with projects like Runes and Alkanes, has stimulated on-chain activity, and the entire on-chain ecosystem is flourishing because of these assets."
Overall, as Bitcoin increasingly responds to institutional demand and macro liquidity cycles, analysts believe its price trends are moving away from news stimuli and more reflecting long-term capital strategic positioning. This structural change is the core reason Bitcoin can stabilize above $100,000.
Bitcoin is 'absorbing' the entire crypto innovation ecosystem
Venture capitalist Tim Draper recently stated on platform X that Bitcoin is becoming the new center of crypto innovation, much like the unification of software revolution by Microsoft back in the day.
Draper pointed out that Bitcoin's market capitalization dominance has risen to over 60%, up from 40% after the 2017 bubble burst and 50% after the 2021 peak, showing its re-establishment of dominance in the crypto ecosystem.
He stated that Bitcoin is integrating innovations that originally belonged to altcoins: smart contracts, decentralized finance (DeFi), Ordinals protocol, and low-cost Layer 2 networks. "All successful innovations on other platforms are now being transplanted to the Bitcoin network," Draper said, describing it as "an accelerated phenomenon similar to the consolidation of big tech." He noted that developers are gravitating towards Bitcoin because it is the safest and most valuable chain.
He added that more and more new-generation entrepreneurs are choosing to build on the Bitcoin network, not only for ideological reasons but also because the infrastructure has matured.
