Bitcoin pushed above the $106,000 mark early Monday, showing resilience despite ongoing geopolitical volatility, particularly the conflict between Israel and Iran.
As of 12:30 a.m. ET, Bitcoin was trading at $106,222, reflecting a 0.25% increase in the past 24 hours, supported by institutional interest and macroeconomic factors.
Fear and Greed Index Signals Cautious Optimism
The Crypto Fear and Greed Index currently stands at 61, placing market sentiment in the “greed” zone but suggesting an “optimistic but measured” investor outlook. This index plays a crucial role in gauging short-term market psychology and risk appetite.
âBitcoinâs recent resilience shows that many investors still see it as a safe-haven asset amid rising geopolitical risk,â according to market analysis.
Volatility Tied to Geopolitical Risk
The weekend saw heightened tensions, including Israeli airstrikes on Iranian nuclear facilities, which briefly caused a 4% drop in Bitcoinâs price. However, Bitcoin recovered quickly, once again proving its reputation as a hedge during global crises.
Analysts suggest that Bitcoinâs price movements are currently driven by a mix of institutional inflows, global liquidity, and macro-level geopolitical events.
Institutional Demand Remains Strong
Spot Bitcoin ETFs recorded net inflows of $5.23 billion in May, matching levels seen earlier this year during significant U.S. political developments. This continued interest reflects the growing institutional appetite for Bitcoin, adding further credibility and long-term momentum.
The recent breakthrough past resistance at $106,406 is seen as a bullish continuation, with analysts targeting a move toward Bitcoinâs all-time high, should buying pressure persist.
Altcoins and Ether Showing Momentum
While Bitcoin maintains market dominance at 65%, Ether (ETH) has gained 1.48% in the past 24 hours, trading at $2,569. Institutions are also eyeing Ethereum, with upcoming DeFi catalysts potentially providing further upside momentum.
FOMC Decision This Week: Key Macro Catalyst
All eyes are on the Federal Open Market Committee (FOMC) meeting scheduled for Tuesday and Wednesday. Markets expect no change in interest rates, with a 96.7% probability of holding steady at 4.25%-4.50%, according to CME FedWatch data.
However, political pressure is mounting, with calls to cut rates by a full percentage point. Any deviation from expectationsâor announcements regarding ETFs or stablecoin regulationsâcould act as short-term market catalysts.
Conclusion
Bitcoinâs firm stance above $106,000 amid rising geopolitical tensions and cautious macroeconomic outlook signals a maturing and resilient asset class. With continued institutional flows, regulatory clarity, and a watchful eye on the FOMC outcome, the crypto market enters the week on bullish but cautious footing.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.