SBitcoin (BTC) soared past $107,000 on Wednesday, reclaiming lost ground as investors welcomed news of a tentative Iran-Israel ceasefire.
The breakthrough in Middle East tensions reversed a weekend slump triggered by military exchanges between the two nations.
The cryptocurrency had briefly dipped below $100,000 on Sunday after Israeli airstrikes hit Iranian targets, prompting retaliatory drone attacks.
However, the Iran-Israel ceasefire deal, brokered by international mediators, sparked a broad market rally, lifting BTC by nearly 2% in 24 hours.
Analysts say reduced geopolitical risks are fueling optimism, even as the Federal Reserve delays interest rate cuts.
Bitcoin reclaims $107,000 as Iran-Israel ceasefire cools market tensions
Crypto and stocks rally following Iran-Israel ceasefire
The Iran-Israel ceasefire didn’t just boost bitcoin—it revitalized the entire crypto market. Ethereum (ETH) and Solana (SOL) posted gains, while the GMCI 30 Index, tracking top cryptocurrencies, climbed 1.3%.
Total crypto market capitalization rebounded to $3.4 trillion, erasing most of Sunday’s losses.
Traditional markets also reacted positively. According to SoSoValue, the S&P 500 jumped 1.1% on Tuesday, breaching the key 6,000 level, though futures stalled after Fed Chair Jerome Powell reiterated a cautious stance on rate cuts.
“The Iran-Israel ceasefire has provided immediate relief,” said Timothy Misir, head of research at BRN. “But the bigger story is institutional demand outpacing macro uncertainty.”
Fed holds firm, but bitcoin buyers shrug it off
Powell told Congress the U.S. economy remains too strong for near-term rate cuts, pushing back expectations to December.
Yet bitcoin’s rally continued, driven by record inflows into U.S. spot ETFs ($588.5 million on June 24) and growing corporate adoption.
Japan’s Metaplanet raised $514 million to expand its BTC holdings, while U.S. states like Texas and Ohio advanced legislation to allocate treasury reserves to bitcoin. Misir noted,
“The Iran-Israel ceasefire helps, but structural demand—ETFs, nation-states, and corporations—is what’s sustaining this rally.”
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Why the Iran-Israel ceasefire matters for crypto
Risk appetite returns: The Iran-Israel ceasefire reduces fears of a broader conflict disrupting oil supplies or triggering sanctions.
Institutional confidence: ETFs and corporations are buying BTC regardless of Fed delays, viewing it as a hedge.
Market liquidity: With tensions cooling, traders are re-entering volatile assets like crypto.
Despite Powell’s warnings, analysts say the Iran-Israel ceasefire could extend bitcoin’s bullish momentum.
“Markets are pricing in stability,” Misir added. “If the truce holds, $110,000 is the next target.”
The bottom line
While the Fed’s rate policy remains a headwind, the Iran-Israel ceasefire has given crypto markets room to breathe.
Bitcoin’s rebound past $107,000 underscores its resilience—and how geopolitics now play a key role in digital asset valuations.
Jeremiah Musa lives and breathes storytelling. For over 12 years, he's chased breaking news, crafted hard-hitting features, and built content strategies that cut through the noise. These days, you'll find him leading the charge at The Bit Gazette, where he oversees a team of writers digging into the biggest stories in crypto.
Based in Dubai's fast-moving fintech scene, Jeremiah has a knack for translating complex blockchain concepts into sharp, engaging content. He's just as comfortable breaking down a Bitcoin whitepaper as he is explaining market moves to newcomers. Before diving into crypto, he cut his teeth in traditional financial journalism, covering everything from emerging markets to regulatory shakeups.
What keeps him up at night? Finding the human angle in every tech story. When he's not editing copy or prepping PR campaigns, he's probably arguing about the future of Web3 over karak chai or hunting down Dubai's best shawarma.
