Despite geopolitical tensions hinting at a further drop, Bitcoin surprised with a strong rebound overnight. Key technical signals and macroeconomic announcements played a crucial role. Is this just a temporary spike or the beginning of a bullish phase ?
Why BTC Surprised the Markets Last Night
After briefly dropping below $98,500 on Sunday, Bitcoin quickly regained the $106,000 mark on Monday. This indicates strong demand from institutional investors despite growing global turmoil. However, this sudden volatility has raised concerns about the stability of Bitcoin mining. An 8% decline in the observed hashrate during the Middle East crisis is evident.
Source: CoinGlass
Some analysts have indeed noticed a significant drop in Bitcoin’s hashrate. It decreased from 943.6 million terahashes per second (TH/s) to 865.1 million TH/s between Sunday and Thursday, marking an 8% decline that fueled speculations about potential disruptions in mining operations in the region. Meanwhile, geopolitical tensions are escalating.
Simultaneously, oil prices dropped on Monday, coinciding with a 1% increase in the S&P 500 index. Following a retaliatory attack in Qatar, traders increasingly bet on the likelihood of the Federal Reserve (Fed) lowering short-term interest rates. This hope for more accommodative monetary policies seems to have supported the Bitcoin’s rebound.
What This Bitcoin Resurgence Reveals About the Market
Speculating on a Bitcoin surge to $110,000 based solely on hopes of calm in the Middle East is premature. The swift rebound above $100,000 suggests that institutional interest in cryptocurrency remains strong even amidst geopolitical tensions. Investors will closely monitor developments, watching for any signs of easing or further escalation.
If you’re looking to invest in Bitcoin, we recommend Bybit exchange. The platform is relaunching in the USA on July 1st, 2025. It’s a great opportunity to try out one of the best crypto apps ahead of time.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
