FameEX Hot Topics | BTC Rebounds to $106K as Ceasefire Eases Tensions and Rate Cut Hopes Rise

Market sentiment improved after U.S. President Donald Trump announced a “total ceasefire” between Israel and Iran, easing geopolitical tensions and giving Bitcoin a boost back to $106,000. The move has led traders to consider whether Bitcoin could break above the $110,000 level or if looming risks could still limit its upward momentum.

Despite recent price fluctuations, Bitcoin’s derivatives market has shown resilience. The rally triggered $193 million in liquidations of bullish leveraged positions, accounting for just 0.3% of total futures open interest. With leveraged positions holding steady at around $68 billion—unchanged from Saturday—it’s clear that traders remain confident in using leverage, even amid global uncertainty.

Bitcoin’s recent 4.4% dip within a 12-hour span, while sharp, is not out of the ordinary. Similar corrections have occurred three times over the past 30 days, reflecting the inherent volatility of the crypto market. However, some investors worry that renewed conflict in the Middle East could still disrupt global markets, prompting a shift toward safer assets and reducing appetite for high-risk investments like cryptocurrencies.

Elsewhere, oil prices declined sharply on Monday after reaching $77 on Sunday. At the same time, the S&P 500 rose by 1%, reflecting optimism in traditional markets. The developments followed a retaliatory strike in Qatar and sparked increased speculation that the U.S. Federal Reserve may soon consider cutting interest rates to cushion potential economic fallout.

While it may be too early to expect Bitcoin to surge past $110,000 purely on geopolitical de-escalation, the swift recovery above $100,000 demonstrates strong institutional support. Despite global tensions and market swings, Bitcoin continues to be perceived as a durable long-term investment by many market participants, reinforcing its growing role as a macro-sensitive asset.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.