“ Bitcoin is now up on bad news, having fully reversed the initial crash,” the economist Alex Krüger told his 218,700 X followers. “First time this happens since March 2023,” he added.
Bitcoin swung wildly throughout the day, sliding to roughly $63,000 in the morning as reports detailed U.S. and Israeli military strikes on Iran, a development that sparked a broad risk-off mood and wiped out millions in crypto liquidations.
To this point, nearly $250 million in bitcoin derivatives positions have been liquidated, including $124.88 million in long bets that were wiped out, with the remaining losses tied to short positions.
What catalyzed the rebound remains uncertain, though some people suggest that the Israel and U.S. strikes on Iran did not immediately spiral into a broader regional conflict, a restraint that may have restored a measure of confidence and lifted sentiment across crypto markets.
For many observers, bitcoin appeared to brush aside the “Iran attack dip like a boss,” absorbing the shock with composure. Despite the bounce, people believe further developments in the Middle East and upcoming U.S. economic indicators, could quite easily drive more swings.
Iranian Supreme Leader Ayatollah Ali Khamenei is widely believed to be dead, according to multiple reports now circulating across media and online channels. “IF (and its a big if) the Iranian leadership really collapses by early next week, and the people are truly liberated, a rapid re-pricing of bitcoin is likely,” one individual opined.
The X account added:
“The amount of liquidity is ALREADY in the system (M2), and the drastic reduction in geopolitical risk would be unlike any positive ‘tail event’ we’ve seen since the 1990s.”
This may have provided the tailwind that nudged BTC higher today, though the true catalyst remains anyone’s guess.
“Feel like, BTC has had a number of opportunities to go down the past couple weeks and hasn’t. When it stops reacting to news, good or bad, you typically end up with a move in the opposite direction more often than not,” the X account Pentoshi wrote.
Whether this latest bounce marks the start of a broader leg higher or merely a pause before the next jolt remains unclear, but bitcoin’s ability to claw back losses in the face of geopolitical shock has not gone unnoticed.
At the time of writing, at 4:30 p.m. EST, BTC is exchanging hands for $66,444 per unit. For now, bitcoin appears to be charting its own course — less reactive, more measured — even as the world around it wrestles with uncertainty.
- Why did bitcoin rise after the U.S. airstrikes on Iran? Bitcoin rebounded from $63,176 to above $67,000 as fears of a broader Middle East conflict eased and traders repositioned.
- How much was liquidated during the bitcoin volatility? Nearly $250 million in bitcoin derivatives positions were liquidated, including about $124.88 million in long bets.
- Did the U.S. and Israel strikes directly cause the bitcoin rally? The exact catalyst is unclear, but restrained escalation and steady global liquidity conditions likely supported the recovery.
- Could bitcoin remain volatile as Middle East tensions unfold? Yes, further developments involving Iran and upcoming U.S. economic data could trigger additional price swings.
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