Bitcoin price managed to cross the $106,000 threshold early on Monday, following a turbulent weekend that was affected by the escalating tension between Iran and Israel. According to The Block’s Bitcoin price page, the leading crypto asset was trading at $106,222 at 12:30 a.m. ET, marking a 0.25% gain over the past 24 hours.
“Bitcoin’s price took a hit of 4% due to geopolitical instability, such as the recent Israeli strikes on Iranian nuclear sites, indicating Bitcoin’s susceptibility to risk-off events,” commented Rachael Lucas, a Crypto Analyst at BTC Markets. “However, it usually bounces back quickly as investors utilize it as a geopolitical hedge.”
Lucas further explained that Bitcoin’s price movement is currently influenced by a mix of institutional flows, macroeconomic data, and geopolitical risks. The crypto’s fear and greed index presently stands at a moderate 61, symbolizing a cautiously optimistic investor sentiment.
Vincent Liu, CIO of Kronos Research, amidst the current geopolitical tension, sees robust global liquidity and institutional demand that could pave the way for a breakout once the situation calms down. Bitcoin ETFs witnessed monthly net inflows of $5.23 billion last month, similar to levels seen around the time of U.S. President Donald Trump’s election that sparked a bull run in the crypto market.
“The successful breach of resistance at $106,406 indicates ongoing bullish momentum, with the next significant target being the all-time high,” Lucas noted. In the meantime, Ether’s price increased by 1.48% in the past day, trading at $2,569. Analysts noted that Ether has been gaining institutional momentum that could be further spurred by catalysts like DeFi summer.
This week’s mega-event is the Federal Open Market Committee Meeting on Tuesday and Wednesday, which could significantly influence BTC and ETH prices, according to Liu. CME Group’s FedWatch Tool predicts a 96.7% chance that the Fed will keep its current interest rate of 4.25% to 4.50%. However, President Trump has been urging Fed Chair Jerome Powell to slash rates by a full percentage point, hinting at potential intervention if it fails to happen, as per the Financial Times.
Beyond the interest rate decision, any announcements related to ETFs or stablecoins from the Securities and Exchange Commission and the Treasury could sway market sentiment and inflows, analysts warned.
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