106,000 dollars amid a ceasefire in the Middle East and bets on rate cuts
Bitcoin rises to 106,000 dollars as traders bet on higher chances of interest rate cuts by the Federal Reserve due to tensions in the Middle East.
Bitcoin recovers to 106,000 dollars amid a ceasefire in the Middle East and bets on rate cuts
Market Analysis
Key Points:
Bitcoin quickly recovered to 106,000 dollars, signaling strong demand from institutional investors despite rising global unrest.
An 8% drop in Bitcoin's hashrate raised concerns about the stability of mining amid tensions in the Middle East.
Bitcoin
BTC
90,675 €
recovered the 106,000 dollar level on Monday after briefly falling below 98,500 dollars on Sunday, the first time in 45 days. Market anxiety eased after U.S. President Donald Trump announced a "total ceasefire" between Israel and Iran. Traders are now assessing whether Bitcoin can move toward 110,000 dollars or if downside risks persist.
Despite the volatility, the Bitcoin derivatives market remained stable. The price movement triggered liquidations of 193 million dollars from bullish leveraged positions in Bitcoin, equivalent to 0.3% of the total open interest in futures. The current amount of 68 billion dollars in leveraged positions has hardly changed since Saturday.
The 4.4% drop in the price of Bitcoin over a 12-hour period is not particularly alarming by historical standards. Similar declines have occurred three times in the last 30 days. However, some traders fear that a prolonged conflict in Iran could weigh heavily on the global economy, leading investors to adopt a more cautious and risk-averse stance.
