Bitcoin is rebounding after a recent dip, reclaiming the $100,000 mark amid escalating Middle Eastern tensions and market volatility.
Escalation of Middle Eastern Conflict
The recent conflict between Israel and Iran has significantly affected the cryptocurrency market. US airstrikes on Iranian nuclear sites, confirmed by President Donald Trump, raised concerns over a potential closure of the Strait of Hormuz, which could lead to soaring oil prices.
Cryptocurrency Market and Price Dynamics
Following a steep sell-off, Bitcoin dipped to a multi-week low of $98,615 but later rebounded. Daily trading volume surged by 75.8%, exceeding $48.4 billion. However, the overall trend remains bearish, with Bitcoin trading below its moving averages.
Outlook for Bitcoin
If Middle Eastern tensions ease, Bitcoin might retest resistance in the $105,000–$106,000 range. Conversely, analysts warn of potential declines towards $92,000 or lower if the conflict intensifies.
The cryptocurrency market remains unstable due to geopolitical factors. The direction of developments depends on the speed of diplomatic resolutions and further capital inflows into the market.
