FameEX Hot Topics | Bitcoin Jumps to $106K on Middle East Ceasefire and Rate Cut Expectations

Market anxiety eased following U.S. President Donald Trump’s announcement of a “total ceasefire” between Israel and Iran, a development that helped propel Bitcoin back to $106,000. The ceasefire has reduced immediate geopolitical risks, leading traders to speculate whether Bitcoin can now make a push toward the $110,000 mark or if underlying downside risks still pose a threat to its rally.

Despite recent price swings, Bitcoin’s derivatives market has remained relatively stable. The latest price rebound triggered $193 million in liquidations of bullish leveraged positions, which accounts for just 0.3% of total futures open interest. Currently, leveraged positions in Bitcoin total approximately $68 billion, showing no significant change from Saturday’s levels—indicating that investor confidence in high-leverage strategies has not been shaken.

While Bitcoin experienced a 4.4% drop over a 12-hour period, such volatility is not uncommon in the crypto market. Similar pullbacks have occurred three times in the past month. Still, some traders remain concerned that any renewed conflict in Iran could cast a long shadow over the global economy, pushing investors toward more risk-averse behavior and potentially curbing further crypto gains.

In broader markets, oil prices fell sharply on Monday after peaking at $77 the day before. This decline coincided with a 1% rise in the S&P 500 index. The market reaction followed a retaliatory strike in Qatar and has fueled speculation that the U.S. Federal Reserve may respond with interest rate cuts in the near future, further impacting financial markets and asset allocations.

Though betting on Bitcoin reaching $110,000 based solely on Middle East de-escalation may be optimistic, the strong bounce above $100,000 signals that institutional interest remains solid. Even amid global uncertainty, Bitcoin continues to be viewed by many as a resilient asset with long-term potential.

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