Bitcoin made a noteworthy recovery on Monday, climbing above the $106,000 threshold after experiencing a dip to just below $98,500 over the weekend, marking its lowest point in 45 days.
Key Highlights:
- Bitcoin rebounded to $106K following a fall below $98.5K, coinciding with President Trump’s announcement of a ceasefire between Israel and Iran.
- An 8% decline in Bitcoin’s hashrate raised some concerns, but expert opinions suggest such fluctuations are typical in the cryptocurrency market.
- The current market sentiment is factoring in a higher likelihood of Federal Reserve interest rate reductions, which tends to favor risk assets such as Bitcoin.
The rebound in Bitcoin’s price was triggered by U.S. President Donald Trump’s declaration of a complete ceasefire in tensions between Israel and Iran, helping to ease fears that had built up during the preceding weekend’s geopolitical turmoil.
The abrupt downturn resulted in $193 million worth of long leveraged Bitcoin positions being liquidated, although this figure represented merely 0.3% of the total open interest.
With around $68 billion in leveraged positions still active, the derivatives market appears largely stable, despite the recent fluctuations.
Bitcoin’s Hashrate Declines by 8% in One Week
In a further twist, Bitcoin’s hashrate fell by 8% over the past week, dropping from 943.6 million TH/s to 865.1 million TH/s, raising speculations concerning possible disruptions in mining activities.
Experts have pointed to Iran’s influence in the global mining landscape, although comprehensive data is scarce. Reports indicate that unauthorized mining operations in Iran might be consuming up to 2 gigawatts of electricity.
However, analysts note that sudden drops in hashrate are not unusual, often resulting from energy-related shutdowns in the United States.
Daniel Batten, an industry analyst, remarked that similar declines have been observed during extreme weather events, including a significant 27% reduction in hashrate caused by storms in Texas and Oklahoma on April 22.
No this is not because Iran is secretly mining large swathes of Bitcoin using nuclear energy. Firstly, drops like this are common (see chart below) and are more likely due to ERCOT curtailment (being paid to shed load, or getting a price signal it’s uneconomical to mine).… https://t.co/AxX3poncZ6 pic.twitter.com/XnL4YGaMCl
— Daniel Batten (@DSBatten) June 23, 2025
On a broader scale, oil prices saw a significant decline on Monday, retreating from a peak of $77 reached over the weekend as financial markets reacted positively to the ceasefire announcement. The S&P 500 index noted a 1% increase, reflecting growing optimism regarding potential interest rate cuts from the U.S. Federal Reserve.
According to the CME Group’s FedWatch tool, the likelihood of the Federal Reserve maintaining its current interest rate of 4.25% through November has dropped to 8.4%.
Conversely, the probability of rate cuts to 3.75% or lower has climbed to 53%, rising from 38% just a week prior.
While it remains uncertain whether Bitcoin can push past the $110,000 mark, its swift recovery indicates that institutional interest continues to hold strong.
Traders find themselves navigating a landscape filled with both optimism stemming from geopolitical de-escalation and caution regarding broader economic variables.
Crypto Funds Experience $1.24B in Inflows
In the latest report, crypto funds reported $1.24 billion in inflows over the past week, marking ten consecutive weeks of growth and bringing the year-to-date total to a record high of $15.1 billion.
Despite this achievement, the pace of inflows began to slow in the latter half of the week, attributed to the U.S. Juneteenth holiday and rising geopolitical uncertainty linked to reports of American involvement in the Iran conflict.
The United States remained the leading contributor, with $1.25 billion in inflows, while Canada and Germany added $20.9 million and $10.9 million, respectively.
Bitcoin garnered $1.1 billion in new investments, continuing its streak of inflows even amid recent price declines, indicating sustained interest from institutional investors.
On the other hand, short-Bitcoin products experienced modest outflows of $1.4 million, further emphasizing the prevailing bullish sentiment surrounding the cryptocurrency.
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