Bitcoin (BTC) has once again surged past $105,000, benefiting from easing geopolitical tensions in the Middle East.
Profit-Taking Meets Fresh Demand
Since mid-April, around 720,000 BTC has been sold primarily by recent buyers. However, demand for Bitcoin has proven strong enough to prevent a market collapse. According to on-chain analyst Axel Adler Jr., the $66 billion increase in realized profits for coins held for less than one month confirms large-scale sales by short-term holders.
Despite the selling pressure, new buyers appear to be absorbing this massive supply, allowing Bitcoin to remain within a relatively narrow range in recent weeks. However, Adler's UTXO Block Profit/Loss Count Ratio Model suggests that the wave of selling may be subsiding.
Geopolitical Climate and Its Impact on BTC
Recent news of a ceasefire between Israel and Iran has positively impacted global markets. U.S. President Donald Trump confirmed a complete cessation of hostilities, alleviating fears of a deeper conflict. Investors have expressed cautious optimism, noting that reduced geopolitical risk might help Bitcoin regain upward momentum.
Bitcoin's Prospects Ahead
Bitcoin has shown noticeable recovery after dipping below the $100,000 mark. Analyst Benjamin Cowen previously highlighted that Bitcoin traditionally faces challenges during summer months when significant drops occur, but it may rebound in late Q4. As of now, BTC has climbed 3.8% in the last 24 hours and hovers around $105,400.
Thus, despite recent selling pressure and market challenges, Bitcoin demonstrates resilience due to new demand and easing geopolitical tensions.
