Bitcoin reclaimed the $106,000 level on Monday after briefly falling below $98,500 on Sunday, the first time in 45 days.
Market sentiment improved after US President Donald Trump announced a comprehensive ceasefire between Israel and Iran. Traders are now assessing whether Bitcoin can surge to $110,000 or if the downward pressure continues.
Despite the price volatility, the Bitcoin derivatives market remained stable. The move triggered a liquidation of $193 million in leveraged positions, equivalent to about 0.3% of total futures open interest.
Total leveraged positions at $68 billion were virtually unchanged from Saturday.
Some traders remain cautious about the potential for a prolonged conflict in Iran, which could weigh on the global economy and prompt investors to take a more defensive approach and avoid risky assets.
Betting that Bitcoin will surge to $110,000 solely on hopes of a de-escalation of the conflict in the Middle East may be premature.
However, the rapid rebound past $100,000 reflects continued strong institutional interest in Bitcoin, despite global geopolitical tensions.
