Bitcoin price exceeds $106,500 after geopolitical dip
Bitcoin strengthened on Monday, recovering part of its recent losses after the renewed Iran-Israel conflict dampened risk appetite and briefly sent the world’s largest cryptocurrency to a weekly low.
Prices for other cryptocurrencies also followed Bitcoin's rise, reclaiming losses. However, risk appetite remained under pressure due to the ongoing Iran-Israel conflict, as both sides exchanged a series of destructive strikes over the weekend.
After falling to $102,000 over the weekend, Bitcoin rose by 1.16% to $106,820 by 10:04 Moscow time.
Iran-Israel conflict and Fed meeting to influence cryptocurrency sentiment this week
Cryptocurrency markets, which are generally more sensitive to shifts in sentiment, are expected to remain cautious this week amid only slight signs of de-escalation in the Iran-Israel conflict.
The resumption of hostilities between the two countries was triggered when Israel attacked several Iranian targets, primarily nuclear sites. Iran condemned these attacks and launched a series of missile strikes on key Israeli targets, including the financial capital of Tel Aviv.
US President Donald Trump stated that efforts to de-escalate are underway, but both Israel and Iran may have to "fight until the end," indicating that a ceasefire is still far off.
The escalation of military actions also led Iran to cancel planned nuclear talks with the US, further undermining hopes for de-escalation.
In addition to geopolitical tensions, traders are expected to refrain from riskier trades until the Federal Reserve's meeting concludes on Wednesday. Although the central bank is expected to leave interest rates unchanged, all eyes will be on Chairman Jerome Powell for any new hints regarding the future direction of rates.
