Bitcoin has surged back above the $107,000 mark following a weekend slump triggered by escalating tensions between Israel and Iran. The price decline began after Israel launched a surprise strike targeting Iranian nuclear and military infrastructure, leading to retaliatory missile strikes by Iran on key Israeli cities. This conflict initially caused Bitcoin to fall to a multi-week low around $103,000, resulting in over $1 billion in liquidated crypto positions.
Despite these geopolitical challenges, investor sentiment shifted positively, with Bitcoin and other top cryptocurrencies rallying. Notably, Solana led altcoin gains with a 9% rise to $157, Ethereum increased by 4% to over $2,600, and Cardano rose over 3%. Approximately $280 million in positions were liquidated during the rebound, mostly from long positions, indicating a sharp market turnaround caught many traders by surprise.
Analysts from 10x Research suggest that Bitcoin's recovery is supported by broader macroeconomic factors such as rising oil prices, strong bond yields, mixed labor data, and limited Federal Reserve guidance. There is evidence of capital rotation from altcoins to Bitcoin, setting a foundation for potential strength later in the year. Bitcoin remains in a consolidation phase but is expected to maintain support above $100,437 with limited short-term pullbacks.
Trading firm QCP notes the current market is stuck in uncertainty due to geopolitical risks, with BTC trading near $105,000. Despite heightened investor anxiety demonstrated by option market premiums on downside puts compared to calls, Bitcoin shows resilience backed by ongoing institutional buying. On-chain data from Glassnode highlights a substantial 656% gain in the current Bitcoin cycle, reflecting maturation despite short-term volatility.
Separately, Bybit announced Byreal, a new Solana-native decentralized exchange aimed at combining high liquidity and fast execution with DeFi transparency. The testnet is planned for June 30, with mainnet launch later this year.