- Bitcoin rebounded to $106,000 after dipping to $98,500, driven by a Middle East ceasefire and hopes of Fed rate cuts.
- An 8% hashrate drop raised mining concerns, possibly tied to Iran or U.S. power issues, but such fluctuations are common.
- Despite a 4.4% price drop, the derivatives market stayed stable, with strong institutional support for Bitcoin.
Bitcoin Bounces Back to $106,000
Bitcoin made a solid comeback, hitting $106,000 on Monday after slipping to $98,500 on Sunday its lowest point in over a month. The jump came after President Trump announced a full ceasefire between Israel and Iran, which calmed a lot of jittery investors.
On top of that, folks are getting hopeful about the Federal Reserve cutting interest rates soon, and that’s got the market active. It’s pretty clear from this quick recovery that big-time investors are still all-in on Bitcoin, even with all the global chaos going on.
Mining Hiccups and Market Moves
There was some worry when Bitcoin’s hashrate the computing power behind mining dropped 8%, going from 943.6 million terahashes per second to 865.1 million.
Some people thought Middle East tensions, especially in Iran, might be messing with mining operations, since there’s talk that Iran’s got some off the books mining eating up a ton of electricity.
But analyst Daniel Batten pointed out that these kinds of dips happen sometimes, often because of power outages. For example, storms in Texas and Oklahoma recently knocked out mining operations in the U.S.
Meanwhile, Bitcoin’s price took a 4.4% hit in just 12 hours, but the derivatives market didn’t flinch much. Only $193 million in bullish bets got wiped out, a tiny 0.3% of futures open interest, and the $68 billion in leveraged positions barely budged, showing traders are still confident.
Now, everyone’s watching to see if Bitcoin can climb to $110,000 or if new global risks will drag it down. Oil prices dropped after hitting $77, and the S&P 500 ticked up 1%, which suggests the markets are breathing a little easier.
The CME Group’s FedWatch tool says there’s a 53% chance interest rates could drop to 3.75% or lower by November, up from 38% last week. Bitcoin’s rapid recovery above $100,000 indicates that it has solid support from institutions, but relying on a massive rally simply because tensions are easing in the Middle East may be a bit premature at this time. Should tensions resurface, some sellers may begin hedging, which could pressure Bitcoin’s price.
