Bitcoin has once again crossed the $106,000 mark after recently dropping below $98,500. This event raises questions about the cryptocurrency's future amid global geopolitical changes.
Fall and Recovery of Bitcoin
On Sunday, Bitcoin fell below the $100,000 level for the first time in 45 days. The primary driver of this drop was geopolitical concerns. However, after former U.S. President Donald Trump announced a 'total ceasefire' between Israel and Iran, investor sentiments improved, facilitating a recovery.
Stability in Derivatives Market
Despite the sharp drop on Sunday, the Bitcoin derivatives market remained relatively stable. Data shows that $193 million worth of bullish positions were liquidated, representing about 0.3% of total futures open interest. The overall value of open positions in Bitcoin currently stands at $68 billion.
Mining Disruption Speculation
Over the weekend, there was an unusual occurrence: Bitcoin's hashrate dropped by 8%. This sparked speculation that mining operations in the Middle East might have been disrupted due to escalating tensions. While it’s difficult to confirm the impact on Iranian miners, there are rumors that unlicensed mining in Iran could consume up to 2 gigawatts of electricity. Analysts caution against interpreting short-term drops in hashrate as systemic issues.
While questions remain regarding whether Bitcoin can reach $110,000, many market participants note that the recovery following the recent drop confirms its resilience and institutional support. Investors continue to closely monitor geopolitical developments and interest rate forecasts.
