Bitcoin retakes $107,000 amid market relief over apparent Iran-Israel ceasefire
Quick Take Federal Reserve Chair Jerome Powell reiterated the bank’s cautious approach to interest rates, citing tariff uncertainties heading into July and the second half of 2025. Despite no Fed pivot in sight, bitcoin rose nearly 2% in the last 24 hours as institutional demand and negotiations in the Middle East bolstered sentiment, according to analysts.
Bitcoin climbed past $107,000 on Wednesday, erasing weekend losses after Iran and Israel agreed to a tentative ceasefire. The cryptocurrency had dipped below $100,000 on Sunday when Israeli missiles struck Iran and Iranian forces answered with air raids, data from The Block's price page shows.
Crypto markets appeared relieved by the news of a truce. The total crypto market capitalization rebounded to $3.4 trillion, while Ether and Solana logged modest gains. The GMCI 30 Index , which focuses on the top 30 cryptocurrencies by valuation, reflected this price action and recorded an uptick.
U.S. Stocks followed BTC's uptrend. The SP 500 added 1.1% on Tuesday and reclaimed the psychological 6,000 level, although futures stalled after Federal Reserve Chair Jerome Powell maintained a neutral tone on rate cuts.
Powell told House lawmakers the economy and labor market remain firm and signaled no policy shift until late-year data arrive. Experts expect the same remark at today’s Senate Banking Committee. Timothy Misir, BRN’s head of research, now expects the first potential cut in December, not September as previously suggested. “This aligns with our expectation that the Fed will wait for September and October CPI prints before acting, likely delivering a 50bp cut in December rather than earlier moves,” Misir said in a note shared with The Block.
Institutional and state demand
Despite Powell's cautious comments, Wall Street continued to buy bitcoin anyway. U.S. spot ETFs pulled in $588.5 million on June 24, while ether funds drew $71 million as cumulative inflows pushed above $4 billion , according to SoSoValue data.
Corporations and state-level entities also amped up efforts to accumulate Bitcoin. Japan’s Metaplanet raised $514 million through stock issuance for its BTC strategy. Meanwhile, Arizona , Ohio , and Texas made strides towards allocating public funds to Bitcoin reserves.
Misir believes this growing demand should dampen macro headwinds and geopolitical jitters. “With institutional demand surging despite the absence of Fed support, we maintain heavy exposure,” BRN’s analyst said. “The structural drivers—state reserves, corporate adoption, and ETF flows—appear resilient to macro headwinds and provide confidence for continued upside.”
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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