Bitcoin reached $106,000 on Monday, recovering from a dip to $98,500. The rise came after a ceasefire announcement in the region.
Bitcoin Recovers After Drop
Bitcoin reclaimed the $106,000 level after briefly dipping below $98,500 on Sunday. This marked the first time in 45 days. Market participants noted that the shift in sentiment was prompted by US President Donald Trump's announcement of a 'total ceasefire' between Israel and Iran. Traders are now weighing whether BTC can move toward $110,000 despite lingering risks.
Conflict Impact on Bitcoin Hashrate
Analysts noticed a significant decline in Bitcoin's hashrate. From Sunday to Thursday, the hashrate fell by 8%, dropping from 943.6 million terahashes per second to 865.1 million. This sparked speculation about potential disruptions to mining operations. Some researchers believe unauthorized mining operations in Iran could draw as much as 2 gigawatts of electricity, though these claims remain largely unverified.
Traders' Confidence in Fed Rate Cuts
Meanwhile, oil prices fell after peaking at $77. This coincided with a 1% gain in the S&P 500 index. Following an attack in Qatar, traders have increasingly bet on the likelihood that the US Federal Reserve will lower interest rates in the near term. According to CME Group's FedWatch tool, the implied probability that the Fed will maintain its current 4.25% interest rate through November has dropped to 8.4%. In contrast, the odds of rates falling to 3.75% or lower by November increased to 53%.
Despite the volatility, Bitcoin's swift rebound above $100,000 suggests that institutional interest remains firm, even amid rising global tensions.
