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Bitcoin quickly rebounded at $ 106,000, reporting the demand for institutional investors despite growing global disorders.
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A sharp 8% drop in Bitcoin hashrate raised concerns concerning mining stability in the middle of the Middle East tensions.
Bitcoin (BTC) recovered the level of $ 106,000 on Monday after briefly plunged below $ 98,500 on Sunday, the first time in 45 days. Market anxiety was held after US President Donald Trump announced a “total ceasefire” between Israel and Iran. Merchants now weigh if Bitcoin can push around $ 110,000 or if the lower risks persist.
Despite volatility, the Bitcoin derivative market has remained stable. The price move sparked $ 193 million in bitcoin position liquidations with a bull lever, which is equivalent to 0.3% of the total of the interests open to the long term. The current $ 68 billion in leverages are practically unchanged from Saturday.
The 4.4% drop in Bitcoin prices over a 12 -hour period is not particularly alarming compared to historical standards. Similar samples have occurred three times in the last 30 days. However, some traders fear that the potential of a prolonged conflict in Iran can weigh heavily on the world economy, which encourages investors to adopt a more prudent and risk posture.
Have bitcoin minors been affected by conflicts in the Middle East?
Some analysts have noticed a significant drop in the Bitcoin hashrate. Between Sunday and Thursday, the hashrate dropped by 8%, going from 943.6 million terahashes per second (TH / S) to 865.1 million TH / S. This has aroused speculation about the potential disturbances of mining operations in the region.
Certain industry analysts have long hypothesized that unauthorized mining operations in Iran could draw up to 2 gigawatts of electricity, although these assertions remain largely not verified.
Precise estimate of the quantity of existing mining capacity in Iran is almost impossible due to the lack of transparent data. However, analysts have stressed that the sudden and net reductions in the hashrate are not necessarily unusual.
Daniel Batten, for example, stressed that such fluctuations are frequently linked to temporary reductions in electricity production in the United States. During extreme time periods, bitcoin minors are often faced with strong incentives to temporarily close operations.
A recent case took place on April 22, when the Bitcoin hashrate plunged 27% after intense storms in Texas and Oklahoma. These meteorological events included heavy rains, a large hail and at least 17 confirmed tornadoes, which all disturbed the local energy network and, consequently, mining activity.
More confident merchants on Fed interest rate drops
Meanwhile, oil prices dropped on Monday after culminating $ 77 on Sunday. This movement coincided with a 1% gain in the S&P 500 index. Following a reprisal attack in Qatar, traders have more and more betting on the probability that the American Federal Reserve (Fed) lowers short -term interest rates.
In relation: The missiles fly, but Bitcoin holds, revealing the strength of the BTC in world chaos
According to the Fedwatch Tool of the CME group, the implicit probability that the Fed will maintain its current interest rate of 4.25% until November fell to 8.4%, against 17.1% a week earlier. On the other hand, the chances of rate of 3.75% or less by November increased to 53%, against 38% over the same period.
Betting that Bitcoin will increase to $ 110,000 only on the hope of de-escalation in the Middle East could be premature. However, the rapid rebound greater than $ 100,000 suggests that the institutional interest in Bitcoin remains firm, even in the middle of global tensions.
This article is for general information purposes and is not intended to be and must not be considered as legal or investment advice. The points of view, the thoughts and opinions expressed here are the only of the author and do not reflect or do not necessarily represent the opinions and opinions of Cointellegraph.
