Bitcoin surged to $106,000 after briefly falling below $98,500, fueled by escalating Middle East geopolitical strains and market anticipation of potential Federal Reserve interest rate reductions.
Simultaneously, Bitcoin’s hashrate dropped by 8%—falling from 943.6 million TH/s to 865.1 million TH/s—prompting concerns among analysts about mining stability during periods of heightened global uncertainty.
Broader markets mirrored volatility with concurrent oil price fluctuations and a 1% gain in the S&P 500 index, reflecting interconnected reactions to economic and geopolitical catalysts.
Federal Reserve rate expectations shifted significantly, with the probability of holding the 4.25% rate through November declining and odds of a reduction to 3.75% or lower exceeding 50%.
Institutional interest in Bitcoin remained robust as market participants continue to view the asset as both a strategic inflationary hedge and a long-term store of value.