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 jumped from $100,000 to $106,000 on the morning of June 24 (Vietnam time), before cooling down and currently fluctuating around $105,000/BTC. This marked a significant recovery, after the world's largest digital currency fell below $98,500 on June 22.

The recovery came 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 (Fed) would 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 4:00 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.

Hawkish comments from the Fed last week also weighed on the money markets, raising concerns that US interest rates will remain high for longer. Data from analytics firm Kaiko shows that bitcoin has been increasingly correlated with the Nasdaq stock index in recent weeks.

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 "shelter" against inflation fluctuations as initially expected.

Bitcoin’s strong recovery has sparked speculation that the digital currency could continue to break out to $110,000. However, many investors remain cautious about the possibility that geopolitical risks could return 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, bitcoin’s rapid recapture of $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