Bitcoin Bounces Back Above $106K After Trump-Brokered Ceasefire

Bitcoin reclaimed the $106,000 level on Monday, recovering from a brief drop below $98,500 the day before . The rebound followed U.S. President Donald Trump’s announcement of a “total ceasefire” between Israel and Iran, which calmed global markets and helped restore confidence among risk-on investors. Despite the sharp price movement , Bitcoin’s derivatives market showed surprising resilience. The downturn triggered $193 million in liquidations of long leveraged positions, roughly 0.3% of total open interest. Still, the total value of leveraged positions remains steady at around $68 billion, suggesting that most traders are holding their positions rather than exiting in panic. The 4.4% drop over 12 hours, while notable, is not unprecedented. Similar dips have occurred three times over the last month. While traders remain cautious, especially given ongoing geopolitical tensions in the Middle East, many believe BTC has strong enough momentum to retest the $110,000 level in the coming days—assuming further escalation is avoided. Bitcoin Mining Activity Shows Signs of Stress One potential area of concern is Bitcoin’s hashrate, which dropped 8% between Sunday and Thursday—from 943.6 million terahashes per second (TH/s) to 865.1 million TH/s. Some market observers speculated that mining disruptions in Iran or neighboring regions may have contributed to the decline, especially amid reports that unauthorized Iranian miners consume up to 2 gigawatts of electricity. However, these estimates remain speculative due to the lack of verifiable data. Experts like Daniel Batten cautioned against drawing direct geopolitical conclusions from short-term hashrate fluctuations. In many cases, similar declines have been linked to temporary power issues elsewhere. For instance, on April 22, a 27% drop in hashrate followed intense storms and tornadoes across Texas and Oklahoma, which severely disrupted local power grids and mining operations. Interest Rate Bets Fuel Further Optimism Alongside Bitcoin’s recovery, oil prices dropped sharply after peaking at $77 on Sunday. This shift, paired with a 1% rise in the S&P 500, bolstered expectations of a U.S. Federal Reserve interest rate cut . According to CME’s FedWatch tool, the probability of rates remaining at 4.25% through November dropped to just 8.4%, while the odds of a cut to 3.75% or lower rose to 53%. Although Bitcoin’s next move is uncertain, its swift recovery above $100K suggests that institutional demand remains strong—regardless of short-term geopolitical or macroeconomic concerns. The post Bitcoin Bounces Back Above $106K After Trump-Brokered Ceasefire appeared first on TheCoinrise.com .

Source: The Coin Rise