Bitcoin made a powerful comeback this week, bouncing back to $106,000 after dipping below $98,500. The sharp reversal came as traders reacted to a “total ceasefire” announcement between Israel and Iran, paired with increasing speculation that the U.S. Federal Reserve may lower interest rates soon.
Despite recent turmoil in the Middle East and market volatility, the move shows renewed strength and interest in Bitcoin—especially from institutional investors. Many now wonder: can BTC climb to $110,000 next?
📉 Hashrate Drop Raises Eyebrows
Amid global tension, Bitcoin’s network took a small hit. Over just a few days, Bitcoin’s hashrate dropped 8%, falling from 943.6 million TH/s to 865.1 million TH/s. This raised questions about possible mining disruptions, especially in areas like Iran, where mining activity has been rumored but not officially confirmed.
However, experts note that such dips are not uncommon. In the U.S., for example, a 27% drop in April followed severe storms across Texas and Oklahoma. Bitcoin miners often shut down during energy crunches, showing how external factors can affect the network.
📊 Leverage and Liquidations Stay Under Control
Even with the rebound, Bitcoin’s derivatives market remained calm. There was about $193 million in liquidations of leveraged long positions—roughly 0.3% of total futures open interest. The current open interest sits near $68 billion, unchanged from previous days, suggesting traders are cautiously optimistic rather than panicked.
💵 Oil Drops, Stocks Climb, and Fed Bets Shift
The ceasefire also pushed oil prices down, while the S&P 500 gained 1%. This shift in broader markets led traders to believe the Fed may finally cut interest rates. According to CME Group’s FedWatch tool, the chance that rates stay at 4.25% through November has dropped to just 8.4%, while the odds of a rate drop to 3.75% or lower jumped to 53%.
This is a key driver for Bitcoin. Lower rates mean looser monetary policy, which typically benefits crypto assets.
🧠 What This Means for Crypto Investors
Bitcoin’s swift recovery above $100K shows solid demand, even in a world filled with uncertainty. Whether you’re a long-term holder or a new investor, the message is clear: institutional players still see value in BTC, even during geopolitical conflict and economic shifts.
While it might be too early to call for $110,000, this rebound shows that Bitcoin remains a powerful store of value during uncertain times.
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