Bitcoin Recovers 106,000 USD After Trump’s Ceasefire Order Between Israel and Iran

Bitcoin has risen back above $106,000 on Monday, after falling below $98,500 on Sunday, the lowest level in 45 days. The recovery occurred after U.S. President Donald Trump declared a "complete ceasefire" between Israel and Iran, easing market concerns following a weekend of geopolitical turmoil. The sudden price fall has led to the liquidation of 193 million dollars of long leveraged Bitcoin positions, but this figure only accounts for 0.3% of the total open contracts. With approximately 68 billion dollars in active leveraged positions, the derivatives market remains largely unaffected. Bitcoin hashrate fell 8% in one week In addition to the volatility, the hashrate of Bitcoin has fallen by 8% in the past week, from 943.6 million TH/s to 865.1 million TH/s, raising speculation about disruptions in mining activities. Analysts have pointed out Iran's role in global mining, although precise data remains elusive. Reports indicate that up to 2 gigawatts of electricity could be consumed by illegal mining activities domestically. However, sudden fluctuations in hashrate are not uncommon. The cause is often related to energy outages in the United States. Analyst Daniel Batten notes that similar falls also occur during extreme weather events, such as the storm on April 22 in Texas and Oklahoma, which temporarily reduced the hashrate by 27%. On the macro front, oil prices fell sharply on Monday, dropping from a peak of $77 on Sunday, as the broader market reacted positively to the ceasefire. The S&P 500 rose by 1%, while expectations for a U.S. interest rate cut increased. According to the FedWatch tool of CME Group, the likelihood that the Federal Reserve will maintain the current interest rate of 4.25% until November has decreased to 8.4%. Meanwhile, the likelihood of interest rates falling to 3.75% or lower has increased to 53%, up from 38% last week. Whether Bitcoin can surpass the $110,000 mark remains uncertain, but the rapid recovery indicates that institutional demand has not weakened. Currently, traders are balancing optimism about easing with caution regarding global developments and macroeconomic factors. Cryptocurrency funds recorded $1.24 billion in inflows in the 10th week. Cryptocurrency funds recorded $1.24 billion in inflows last week, marking the tenth consecutive week of increases and bringing the total amount for the year to a record $15.1 billion. Although this important milestone has been reached, the rate of capital inflow has slowed down in the latter half of the week. The report states that this decline is due to the Juneteenth holiday in the United States and the increasing geopolitical instability surrounding reports of U.S. involvement in the Iran conflict. The United States remains the main driver, contributing 1.25 billion dollars to the capital flow. Canada and Germany contributed 20.9 million dollars and 10.9 million dollars, respectively. Bitcoin has attracted $1.1 billion in new capital, marking the second consecutive week of inflows despite recent price weakness, signaling continued demand from institutional buyers. Meanwhile, Bitcoin short-selling products saw a modest outflow of $1.4 million, reinforcing the bullish trend.