Bitcoin surges after the "shock" of the Middle East conflict.

(Dan Tri Newspaper) - Bitcoin surged to $106,000 on expectations of a Fed interest rate cut and signs of de-escalation from the Middle East following President Trump's ceasefire announcement.

The price of Bitcoin surged from $100,000 to $106,000 on the morning of June 24th (Vietnam time), before cooling down and currently fluctuating around $105,000/BTC. This development marks a significant recovery, after the world's largest cryptocurrency had fallen below $98,500 on June 22nd.

The recovery occurred amidst easing market tensions following former US President Donald Trump's unexpected statement about a "comprehensive ceasefire" between Israel and Iran. Simultaneously, expectations of the Federal Reserve (Fed) soon shifting to a more dovish monetary policy also contributed to market support.

At the same time, Iranian Foreign Minister Abbas Araghchi announced that Tehran was ready to halt its attacks if Israel ceased its airstrikes before 4:00 AM local time that same day.

Earlier, Iran had strongly condemned the US military actions and warned of a strong response. Some sources indicated that Tehran might consider closing the Strait of Hormuz – a particularly important shipping lane for global oil shipments. This risk caused crude oil prices to surge on June 24.

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

Bitcoin price surges (Image: Binance).

Although cryptocurrencies are not directly affected by traditional economic fluctuations, due to their speculative nature, the market remains highly sensitive to changes in investor sentiment in response to geopolitical situations.

Last week, the Fed's hawkish statements also put pressure on the currency market, raising concerns that interest rates in the US will remain high for longer. Data from analytics firm Kaiko shows that in recent weeks, bitcoin has been increasingly showing a strong correlation with the Nasdaq stock index.

This development suggests that bitcoin is now being viewed by investors as a speculative asset, sensitive to interest rates and economic risks, similar to technology stocks, rather than a "safe haven" against inflationary fluctuations as initially expected.

Bitcoin's strong recovery has fueled speculation that the cryptocurrency could continue its upward trend, potentially reaching $110,000. However, many investors remain cautious about the possibility of geopolitical risks returning at any time.

According to experts, the 4.4% drop in Bitcoin over the previous 12 hours is not unusual given historical trends. In the past 30 days alone, the market has seen at least three corrections of similar magnitude. Another factor supporting the market is the growing expectation that the Fed will soon cut interest rates to support the economy.

Analysts believe that betting on a short-term $110,000 price level based solely on hopes of a Middle East ceasefire may be premature. However, Bitcoin's rapid recovery to $100,000 is clear evidence that demand from institutional investors remains strong, even as the world faces significant 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