Bitcoin (BTC) has surged back above the $106,000 mark after dipping to $98,500 on Sunday, its lowest point in 45 days. The recovery came as U.S. President Donald Trump announced a “total ceasefire” between Israel and Iran, easing market fears and boosting investor confidence.
Despite the brief selloff, Bitcoin’s derivatives market stayed mostly stable. The price drop triggered $193 million in liquidations of bullish leveraged positions, but total futures open interest remains steady at $68 billion.
There are traders who are now keenly observing whether Bitcoin will be able to breach the $110,000 resistance but there is still a worry about the geopolitical tensions that are still present. A prolonged conflict in the Middle East could still spook investors and lead to more risk-averse strategies.
Interestingly, Bitcoin’s network was also impacted during the weekend drop. The hashrate fell 8%, from 943.6 million TH/s to 865.1 million TH/s. Some analysts believe this could be linked to mining disruptions in Iran, where unverified reports suggest up to 2 gigawatts of power may be used by illegal mining farms.
However, sudden hashrate drops aren’t unusual. Daniel Batten noted similar declines have occurred in the U.S. during extreme weather events, such as the 27% plunge in April during Texas and Oklahoma storms.
Meanwhile, oil prices fell and the S&P 500 rose 1% on Monday. Traders are now more confident the U.S. Fed could cut interest rates soon. The chance of a rate cut by November has risen sharply, offering potential tailwinds for Bitcoin’s next move.
Also Read: US Attack on Iran Crashes Bitcoin Mining Hashrate: Fact Check
