Bitcoin surges after Middle East war "shock"

(Dan Tri) - Bitcoin jumped to $106,000 thanks to expectations of the Fed cutting interest rates and signs of cooling in the Middle East after President Trump's ceasefire announcement.

Bitcoin price has increased sharply from the 100,000 USD mark to 106,000 USD on the morning of June 24 (Vietnam time), before cooling down and currently fluctuating around the 105,000 USD/BTC mark. This development marks a significant recovery, after the world's largest digital currency fell below 98,500 USD on June 22.

The recovery comes amid a softening of market sentiment following former US President Donald Trump’s surprise announcement of a “comprehensive ceasefire” between Israel and Iran. Expectations that the US Federal Reserve will soon shift to a more accommodative monetary policy also helped support the market.

At the same time, Iranian Foreign Minister Abbas Araghchi announced that Tehran was ready to stop the attacks if Israel ended the airstrikes before 4 a.m. the same day (local time).

Iran has previously strongly condemned the US military actions and warned of a strong response. Some sources said Tehran could consider closing the Strait of Hormuz - a particularly important shipping route for global oil transportation. This risk caused crude oil prices to skyrocket on June 24.

Rising oil prices have also raised concerns about energy inflation, which could keep global interest rates high for longer.

Bitcoin price increased sharply (Photo: Binance).

Although cryptocurrencies are not directly affected by traditional economic fluctuations, due to their speculative nature, the market is still very sensitive to changes in investor sentiment in the face of geopolitical situations.

Last week, the Fed’s hawkish comments also weighed on the money markets, raising concerns that US interest rates will remain high for longer. Data from analytics firm Kaiko shows that in recent weeks, bitcoin has shown an increasingly strong correlation with the Nasdaq stock index.

This development shows that bitcoin is being viewed by investors as a speculative asset, sensitive to interest rates and economic risks, similar to technology stocks, instead of a "safe haven" against inflation fluctuations as initially expected.

Bitcoin’s strong recovery has sparked speculation that the digital currency could continue to break through to $110,000. However, many investors remain cautious about the possibility of geopolitical risks returning at any time.

Bitcoin’s 4.4% drop in the previous 12 hours is not unusual in historical terms, experts say. The market has seen at least three corrections of similar size in the past 30 days. Another factor supporting the market is growing expectations that the Fed will soon cut interest rates to support the economy.

Analysts say that betting on a short-term $110,000 rally based solely on hopes of a Middle East ceasefire may be premature. However, the rapid recapture of bitcoin above $100,000 is clear evidence that institutional demand remains strong, even as the world faces geopolitical uncertainty and macroeconomic risks.

Source: https://dantri.com.vn/kinh-doanh/bitcoin-tang-dung-dung-sau-cu-soc-chien-su-trung-dong-20250624173313306.htm