news 
After a tumultuous weekend driven by geopolitical unrest, Bitcoin is roaring back to life. The cryptocurrency has surged above $106K following U.S. President Donald Trump’s announcement of a “total ceasefire” between Israel and Iran. The remarkable bounce-back is fueled by the easing of tensions and the increased possibility of interest rate cuts in the United States.
As investors breathe a collective sigh of relief, hopes for a strong rebound are growing. The recent surge of $193 million in long liquidations notwithstanding, Bitcoin’s open interest remains robust at $68 billion, indicating sustained institutional interest in the cryptocurrency. This could be a strong signal for the price to potentially reach new highs.
The sudden recovery also got an additional boost from Trump Media’s surprise announcement of a $400 million stock buyback and filing to launch a dual Bitcoin and Ethereum ETF under its Truth Social brand. This move has caught many off guard, highlighting the growing influence of institutional capital on the crypto market.
Notably, MicroStrategy’s massive $1 billion investment in BTC earlier this month is also contributing to the current sentiment shift. The fact that big players are doubling down on Bitcoin is seen as a strong signal for the price to continue its upward trajectory.
While some are cautious due to ongoing geopolitical tensions and the risk of further escalation, institutional investors appear unfazed by these concerns. This could be a buying opportunity for some, especially those following a dollar-cost averaging (DCA) strategy. On the other hand, others warn that increased volatility might continue if global tensions escalate further.
In any case, as Bitcoin’s hashrate fell 8% last week due to unforeseen curtailment, analysts are urging caution and reminding investors of past instances where Bitcoin tends to bounce back harder than traditional markets after a crisis.
Source: coinpedia.org
