Bitcoin goes up after the ceasefire between Israel and Iran

Like any financial actors, Bitcoin is very dependent on the geopolitical situation and the start of the war between Israel and Iran this weekend has dropped its price under the $ 100,000. The announcement of a ceasefire between the two countries yesterday had the opposite effect, not only for Bitcoin which crossed the 109,000 dollars mark today but also for other financial assets.

Bitcoin flies away again after the end of hostilities

For several weeks, Bitcoin has been fighting to safeguard the support of $ 100,000, acquired with the electoral victory of Donald Trump and then lost this winter this winter. This time, it was the geopolitical uncertainties in the Middle East that have created a downward trend in recent days. Indeed, during mutual missile launches between Iran and Israel, Bitcoin went under the symbolic bar of 100,000 dollars, causing the rest of the cryptocurrency market.

Fortunately, yesterday a ceasefire between the two countries began. Obviously, it was necessary to reassure the markets and resume a bullish trend. Very quickly Bitcoin exceeded $ 105,000 and arrived at $ 109,000 a few hours ago. This upward trend is also found in the purchase of Bitcoin ETF. On June 24, the US ETF Spot Bitcoin obtained $ 588.5 million in entries.

In the top 10 cryptos, most of the assets regained their previous value last weekend or even took advantage of the return to calm to be up 7 days, like the XRP. On the contrary, the ETH and the ADA remain down weekly despite a slight rise in early week, which shows the uncertainties that surround these two cryptocurrencies.

New growth in perspective for Wall Street?

This increase in bitcoin is not an isolated case because it is on the contrary the whole market which reacted positively to the ceasefire. The S&P 500 experienced an increase of 1.1% and returned to the very psychological support of the 6000 points.

Beyond the ceasefire between Israel and Iran, several clues show that American finance could regain an upward trend. The customs tariffs imposed by Donald Trump may have led to short-term inflation but could increasingly promote American companies.

In addition, Jerome Powell has announced that a drop in interest rates could be envisaged in the coming months if the US economy continues on this path. We know that Donald Trump is very critical of the president of the Fed and considers that this maintenance of high interest rates does not allow his economic policy to give all its effects. However, if this decrease comes soon and the geopolitical situation of the Middle East is calming, we can expect a good bullish recovery on the various markets.

Bitcoin could benefit from this general momentum and more and more companies could follow the example of strategy and microplanet by creating bitcoin reserves as a bulwark against inflation.

Structural engines – States reserves, adoption by companies and ETF flows – seem to be resilient in the face of macroeconomic difficulties and reinforce us in the perspective of a continuous increase.

Timothy Misrir, research director at BRN

This institutional request increasingly favored by the relaxation of the regulatory framework could be the engine of a new brute rally of the BTC.

After the anxiety that the markets experienced this weekend, the return to a more peaceful geopolitical situation allowed several assets to take up an upward trend. This is the case of Bitcoin which is of interest to more and more institutions and businesses in recent months. The drop in this weekend was therefore only a passenger episode which does not erase all the progress of the past few weeks.