Bitcoin Rebound 3.34% Amid Geopolitical Tensions

Bitcoin experienced a significant drop below $99,000 over the weekend following a U.S. military operation that targeted three key nuclear sites in Iran. The operation, involving 125 U.S. aircraft, including seven B-2 stealth bombers, launched dozens of 30,000lb “bunker buster” missiles on the Fordo and Natanz nuclear sites. A third site, Isfahan, was attacked by a U.S. submarine using Tomahawk missiles. This military action, dubbed “Midnight Hammer,” was described as the largest B-2 operational strike in U.S. history. Iran has vowed retaliation, threatening to close the Strait of Hormuz, a critical trade route for global oil supply.

Despite the geopolitical tensions, oil prices surprisingly declined by more than 5% to sub-$70 levels. This drop in oil prices coincided with a rebound in Bitcoin, which climbed 3.34% over the past 24 hours to trade at $102,916.34. The cryptocurrency had previously fallen to as low as $98,286.21 before peaking at $103,016.66. The recovery in Bitcoin's price suggests that institutions and investors are viewing the cryptocurrency as a safe haven asset, even amidst significant geopolitical turmoil. Institutions like Metaplanet have rushed in to buy the cryptocurrency at a discount, and crypto investor Anthony Pompliano just announced a billion-dollar bitcoin treasury company called Procap.

The digital asset’s market capitalization rose to $2.04 trillion, up 3.53% from the previous day. However, trading volume fell 10.02% to $57.96 billion, indicating that some traders are adopting a wait-and-see approach given the ongoing Middle East conflict. Bitcoin's dominance in the market dipped slightly to 65.63%, but it remains higher than it has been in recent times. Meanwhile, futures market activity ticked up, with open interest rising 1.32% to $68.14 billion.

Derivatives data revealed a clear tilt in market sentiment, with Coinglass reporting $118.88 million in total liquidations over the past 24 hours. Bears took the heavier hit, with $69.93 million in short liquidations compared to $48.95 million in longs. This suggests that despite the initial drop, market sentiment is shifting in favor of Bitcoin, with more investors betting on its recovery.

U.S. President Donald Trump has issued a stern warning against any retaliation from Iran, further adding to the geopolitical uncertainty. The situation remains fluid, with the potential for further escalation or de-escalation depending on Iran's response. However, the resilience shown by Bitcoin in the face of these events highlights its growing acceptance as a safe haven asset, capable of weathering significant geopolitical storms.