Bitcoin experienced a sharp but brief decline following heightened geopolitical instability triggered by recent Middle East tensions. The cryptocurrency fell approximately 4% after Israel’s strike on Iranian nuclear sites, reflecting initial market jitters.
However, Bitcoin rapidly recovered losses within hours, reinforcing its reputation among investors as a viable geopolitical hedge asset. This resilience occurred amid mounting institutional recognition of cryptocurrency’s role in diversified portfolios during global uncertainties.
Significantly, Bitcoin crossed the $106,406 resistance barrier during its recovery, signaling sustained bullish momentum. Technical analysts indicate this breakthrough potentially opens the path toward challenging its all-time high as buying pressure continues.
Vincent Liu, Chief Strategy Officer at Kronos Research, emphasized that easing geopolitical risks combined with anticipated global central bank liquidity could ignite a strong Bitcoin rally. He notes expanding institutional participation as a primary market catalyst despite volatility.
Macroeconomic conditions and structural investment demand appear positioned to drive Bitcoin’s near-term trajectory. Market observers highlight investor confidence in cryptocurrency’s stability characteristics during turbulent periods as a key factor supporting valuations.