Bitcoin recovers 4.5% to $106,581.8 amid Israel-Iran conflict

Bitcoin's price experienced a notable recovery on Monday, rising to $106,581.8 by 01:55 ET (05:55 GMT) after a weekend of volatility triggered by the escalating conflict between Israel and Iran. The geopolitical tensions led to a brief drop in Bitcoin's value to as low as $102,000, reflecting the heightened risk aversion among investors. The broader cryptocurrency market also mirrored Bitcoin's recovery, with other major cryptocurrencies showing gains. However, the overall risk appetite remained subdued due to the ongoing conflict, which saw both sides exchange a series of devastating strikes over the weekend.

The Israel-Iran conflict, which intensified with Israel's attack on several Iranian targets, including nuclear facilities, and Iran's subsequent missile strikes on major Israeli targets, has significantly impacted market sentiment. U.S. President Donald Trump's comments indicating that a ceasefire was far from being struck further exacerbated the uncertainty. The cancellation of scheduled nuclear talks between Iran and the U.S. added to the geopolitical tensions, making it difficult for markets to find stability.

Beyond the geopolitical uncertainties, the upcoming Federal Reserve meeting on Wednesday is also expected to influence market sentiment. While the central bank is widely anticipated to keep interest rates unchanged, traders will be closely watching Chair Jerome Powell for any hints on the future path of rates. This, combined with the ongoing Israel-Iran conflict, is likely to keep crypto markets on edge, with traders remaining largely risk-averse.

Despite the recent volatility, Bitcoin's ability to recover to $106,000 highlights its resilience and growing acceptance as a safe-haven asset. The cryptocurrency's price movements in response to geopolitical events underscore the importance of staying informed about global developments for investors. As the situation between Israel and Iran continues to evolve, it will be crucial for market participants to monitor the developments closely and adjust their strategies accordingly.