Bitcoin Drops 11% on Geopolitical Tensions, Rebound 7% on Ceasefire

Bitcoin (BTC) experienced a significant drop below the $100,000 mark at the start of the week due to escalating tensions between Israel and Iran. However, the cryptocurrency swiftly recovered, surpassing $106,000 following the announcement of a ceasefire. This rebound was mirrored by other altcoins, with Ethereum (ETH) rising above $2,400, and smaller gains observed in Solana (SOL), Dogecoin (DOGE), and XRP.

Amidst the market volatility, Bitget Research chief analyst Ryan Lee shared his predictions for the future of Bitcoin and Ethereum. Lee noted that while Bitcoin initially fell to $98,000 due to geopolitical tensions, it later recovered. However, he cautioned that the cryptocurrency did not immediately stabilize after its drop below $99,000, indicating ongoing risks despite strong ETF inflows providing structural support.

Lee emphasized that while Bitcoin has the potential to serve as a safe haven, the current risk appetite in the market is under control, which could delay BTC's recovery. Despite the risks, Lee remains optimistic about the long-term prospects of Bitcoin, predicting that it could reach $110,000-$115,000 in the third quarter of this year and potentially surge to $130,000-$160,000 by the end of the year.

In addition to his predictions for Bitcoin, Lee also shared his outlook for Ethereum. According to the analyst's forecast, Ethereum is expected to rise to between $2,600 and $2,800 in the near term, with the potential to reach up to $5,500 in the long term. Lee's predictions reflect a cautious yet optimistic view of the cryptocurrency market, acknowledging the risks while highlighting the potential for significant gains in the future.