Bitcoin Bounces Back Above $106K as Geopolitical Tensions Ease and Rate Cut Hopes Rise

Bitcoin saw a sharp recovery this week, climbing back to $106,000 after briefly falling below $98,500—the lowest level in over a month. The rebound followed news of a ceasefire agreement in the Middle East and growing market expectations that the U.S. Federal Reserve may cut interest rates in the coming months.

Despite recent volatility, market sentiment remained firm. Analysts noted that institutional interest in Bitcoin appears resilient even in the face of global uncertainty. Meanwhile, fluctuations in Bitcoin’s mining hashrate—down 8% over a few days—raised some concerns, but experts pointed out that such drops are often linked to temporary power disruptions, not necessarily structural issues.

At the same time, economic data and rate forecasts played a major role in shaping market direction. Falling oil prices, slower inflation, and rising jobless claims have increased the likelihood of a rate cut by the Fed before year-end. According to futures markets, the probability of lower interest rates by November has grown noticeably.

While the path to $110,000 remains uncertain, Bitcoin’s swift recovery highlights its continued relevance as a speculative and alternative asset during times of shifting global dynamics.