NEWS

Bitcoin Recovers Slightly After Sharp Losses Amid Escalating Geopolitical Tensions in the Middle East

Bitcoin prices started the week with modest gains, rising 1.2% to reach $102,200 on Monday evening (Saudi time), after dropping to a low of $99,000 over the weekend. This limited recovery followed intense selling pressure sparked by rising geopolitical tensions after U.S. strikes targeted nuclear facilities in Iran.

Bitcoin broke out of its recent trading range between $103,000 and $108,000 for the first time in weeks but managed to hold above the key psychological level of $100,000, reflecting resilience among some investors despite the volatility.

Rising U.S.-Iran Tensions Fuel Market Uncertainty

The United States launched airstrikes on three major Iranian nuclear sites, with claims from U.S. officials that the facilities were destroyed. These claims, however, could not be independently verified. Iran condemned the attacks and warned of strong retaliation, with reports suggesting Tehran might shut down the Strait of Hormuz — a vital global oil shipping route.

This escalation drove oil prices sharply higher, increasing concerns about a new inflationary wave that could lead central banks, particularly the Federal Reserve, to keep interest rates elevated for a longer period.

Although cryptocurrencies are not directly tied to oil or inflation, market volatility and risk-off sentiment often weigh heavily on digital assets due to their speculative nature.

MicroStrategy Expands Bitcoin Holdings with New Purchase

Reinforcing its long-term bullish stance on Bitcoin, Strategy (NASDAQ: MSTR) — formerly MicroStrategy — announced the acquisition of an additional 245 BTC worth $26 million. This brings its total holdings to 592,345 Bitcoins, with an estimated market value nearing $60 billion.

The purchase was funded through proceeds from preferred stock offerings (STRK and STRF). The company’s average acquisition price now stands at $70,681 per Bitcoin.

Altcoins Follow Bitcoin’s Lead: Ethereum and Solana Post Notable Gains

Alongside Bitcoin's rebound, major altcoins saw significant upward movement:

Ethereum (ETH) rose 4% to $2,290.68

XRP gained 3% to $2.02

Cardano (ADA) climbed over 3%

Solana (SOL) surged more than 5%

Dogecoin (DOGE) added 4%

$TRUMP token rose by approximately 2.7%

As geopolitical tensions persist, investor attention is now shifting to the U.S. Federal Reserve, with Chair Jerome Powell set to testify before Congress this week, offering potential insights into future monetary policy.