Bitcoin (BTC) has climbed back above $106,000, rebounding from a weekend low of $98,500—its weakest level in a month and a half. This resurgence followed U.S. President Donald Trump’s declaration of a “total ceasefire” between Israel and Iran, which helped ease geopolitical concerns and reignited market optimism.
Although the market experienced a brief selloff, the Bitcoin derivatives space remained relatively steady. The decline resulted in $193 million worth of bullish leveraged positions being liquidated, yet the overall futures open interest continues to hold at $68 billion.
Market participants are now closely watching to see if Bitcoin can break past the $110,000 resistance. However, lingering geopolitical uncertainties remain a potential headwind. If instability persists in the Middle East, it could push investors toward more cautious, risk-averse approaches.
The recent price drop also had an effect on Bitcoin’s network fundamentals. Over the weekend, the hashrate fell by 8%, dropping from 943.6 million TH/s to 865.1 million TH/s. Analysts suggest the decline may stem from mining interruptions in Iran, where reports—still unconfirmed—indicate that up to 2 gigawatts of electricity may be consumed by illegal mining operations.
Such dips in hashrate aren’t unprecedented. According to Daniel Batten, similar fluctuations have taken place in the U.S., including a notable 27% decrease in April due to storms in Texas and Oklahoma.
Elsewhere in the markets, oil prices dipped while the S&P 500 posted a 1% gain on Monday. Investor sentiment is improving, and expectations for a U.S. Federal Reserve interest rate cut by November are on the rise—potentially giving Bitcoin added momentum in the coming months.
