Bitcoin Rebounds 7% After Middle East Ceasefire Announcement

Bitcoin experienced a notable rebound after falling below $100,000 for the first time in over 46 days, concluding the week just above $107,000. The overall crypto market was heavily influenced by geopolitical tensions between the United States, Iran, and Israel, which initially caused Bitcoin to dip below $98,000. The military strikes and threats of retaliation in the Middle East triggered investor anxiety, breaking the key psychological support at $100,000. However, the situation quickly turned around following the announcement of a ceasefire on Monday, which sent Bitcoin soaring past $106,000.

The ceasefire agreement, announced by U.S. President Donald Trump, brought relief to the international community. Both Israel and Iran expressed support for the truce, although new attacks were reported from both sides, casting doubt over the ceasefire that could have ended the 12-day war. Global markets remained hopeful for a definitive resolution to the Middle East conflict, which had escalated over the weekend following U.S. strikes on Iranian nuclear facilities.

On the morning of Monday, June 23, 2025, Bitcoin was trading at $101,480, down 0.8% over the past 24 hours. On Sunday, BTC briefly dipped to $98,400, threatening to break below the key psychological support level of $100,000. The main trigger for the drop was rising tensions in the Middle East, including a U.S. strike on Iranian nuclear facilities under a mission called Midnight Hammer and Iran’s response, with Supreme Leader Ali Khamenei vowing retaliation. The escalation sparked panic among investors, who rushed to liquidate volatile assets like BTC in favor of safer, more liquid positions.

The heavy sell-off extended beyond Bitcoin, dragging down other major cryptocurrencies such as Ethereum, Solana, and BNB. Fears that the Strait of Hormuz could be closed further increased risk aversion, as such a move could disrupt global oil supplies. However, on June 24, 2025, Bitcoin jumped 3.8% in 24 hours, reaching $105,253 following the announcement of a ceasefire between Iran and Israel. The market interpreted the news as a sign of geopolitical relief, easing risk aversion among investors. According to André Franco, an analyst, BTC also benefited from a weakening U.S. dollar, a factor that typically favors risk-on assets like cryptocurrencies.

Bitcoin’s surge triggered a broader rally across altcoins. XRP, Ethereum, Solana, and Dogecoin all saw significant gains, responding positively to the easing of tensions and the return of capital to risk assets. Bitcoin held steady around $107,161 this Friday, with a slight 0.3% dip in the past 24 hours, signaling strong buying interest even after several weeks of gains driven by macroeconomic factors and institutional momentum.

U.S.-based spot Bitcoin ETFs are in the midst of a powerful capital inflow streak, with 13 consecutive days of net positive inflows, totaling approximately $2.9 billion since mid-June. The largest single-day inflow reached $588.6 million, marking the biggest of the month so far. Over the past week alone, ETFs have attracted more than $1.2 billion in new investments. Stability above $107K suggests strong technical support, and growing institutional demand strengthens Bitcoin’s role as a global financial asset. If inflows remain steady, BTC may soon test resistance levels above $110,000. With Bitcoin holding firm around $107K and ETFs posting nearly two weeks of uninterrupted inflows, the market is signaling that the institutional bull cycle is not only intact but gaining strength. If the trend continues, new price records could be on the horizon.