The crypto market is witnessing a recovery after a sharp decline brought on by geopolitical risks. Bitcoin has once again crossed the $100,000 mark.
Market Developments
The cryptocurrency market has rebounded as Bitcoin reached $105,000 following news of a potential truce between Israel and Iran. U.S. President Donald Trump announced a full ceasefire, calming investors' fears. The crypto market cap increased by 2.8% to $3.39 trillion, and Ethereum spiked by 6.7% to reclaim the $2,400 level.
Institutional Investments Boost Recovery
The increase in institutional investment flows has also supported the recovery. U.S. Bitcoin ETFs recorded inflows of $350.4 million on Monday, significantly elevating interest in the asset. This followed a decrease in outflows, indicating growing investor appetite.
Regulatory Changes Open New Opportunities
Changes in regulation introduced by the U.S. Federal Reserve have been a key factor in normalizing banking access to the crypto industry. The removal of the term 'reputational risk' from bank supervision guidelines could enhance opportunities for companies dealing with digital assets.
The crypto market's recovery emphasizes the impact of geopolitical events and institutional investment flows, which may continue to sustain market activity.
