Bitcoin stabilized on Monday following a tumultuous weekend, recovering some of its previous losses amid ongoing geopolitical tensions that continue to affect global risk sentiment. As of 09:15 ET, Bitcoin traded at $106,690.8, reflecting a 1.1% increase after dipping below $102,000 during intense military exchanges between Israel and Iran.

Crypto Markets Follow Bitcoin’s Lead

Other major cryptocurrencies also exhibited modest gains, tracking Bitcoin’s recovery. However, apprehensive market sentiment prevails due to the renewed conflict between Israel and Iran, which continues to dampen demand for high-risk assets.

Geopolitical Shock: Ceasefire Hopes Dim

The escalation was ignited by Israeli airstrikes on Iranian nuclear installations, closely followed by missile strikes from Iran, including attacks on Tel Aviv. Although President Trump indicated efforts to de-escalate, he also mentioned that the two states may need to “fight it out”, diminishing prospects for peace.

Moreover, Iran has cancelled scheduled nuclear negotiations with the U.S., indicating that diplomatic options are dwindling.

Market Focus Shifts to the Fed

Additionally, attention is geared toward the Federal Reserve’s two-day meeting concluding on Wednesday. While a rate change is not anticipated, observers are closely monitoring Fed Chair Jerome Powell’s remarks for hints regarding future policy direction. As inflation softens and economic indicators reflect cooling, crypto investors are hopeful for dovish signals conducive to risk assets.

Trump’s Crypto Project Under Scrutiny

A separate report from Reuters highlighted that President Trump earned more than $600 million in 2024, which includes substantial returns from various crypto ventures. His World Liberty token project alone garnered over $57.35 million, raising concerns over potential conflicts of interest as his administration’s approach to crypto has been perceived as favorable.

For real-time updates on cryptocurrency performance and historical price tracking, investors can access market analysis tools to gain a comprehensive view of the landscape.