Bitcoin Rebounds to $105,000 on Improving Sentiment
Bitcoin climbed back above $106,000 on Monday after briefly dropping below $98,500 on Sunday — the first dip under that mark in 45 days.
Market fears began to ease after U.S. President Donald Trump announced a “total ceasefire” between Israel and Iran. Traders are now watching to see if Bitcoin can rally toward $110,000 or if downside risks still linger.
Despite recent volatility, the Bitcoin derivatives market remained stable. The drop led to $193 million in long position liquidations, accounting for just 0.3% of all futures open interest. Total leveraged positions stood at $68 billion, almost unchanged from the weekend.
The 4.4% price drop over 12 hours isn’t out of the ordinary, having occurred multiple times in the last month. Still, some investors are wary that prolonged conflict in the Middle East could dampen global economic sentiment and shift the market toward risk aversion.
Some observers also noted an 8% decline in Bitcoin’s hashrate between Sunday and Thursday, raising questions about mining disruptions. The hashrate fell to 865.1 million TH/s from 943.6 million TH/s.
Though there’s speculation that Iran may be running significant unauthorized mining operations, exact data is hard to verify. Analysts noted, however, that sudden hashrate drops aren’t unusual. Daniel Batten pointed out that such dips often coincide with energy reductions, like those caused by extreme weather in the U.S., which recently led to a 27% plunge after storms hit Texas and Oklahoma.
Meanwhile, oil prices dropped sharply on Monday after reaching $77 the day before, while the S&P 500 rose 1%. This coincided with rising market expectations that the Federal Reserve might cut interest rates soon.
Data from CME’s FedWatch tool shows a significant drop in the likelihood of the Fed holding its current 4.25% rate through November, and a growing chance of rates falling to 3.75% or lower.
While a breakout to $110,000 might be premature based solely on hopes of Middle East de-escalation, Bitcoin’s strong bounce above $100,000 signals that institutional interest remains strong even in turbulent times.
Sources:
https://cointelegraph.com/news/bitcoin-rebounds-to-106k-amid-middle-east-ceasefire-and-rate-cut-bets