Bitcoin recovers to $106,000 on Middle East ceasefire and Fed rate cut expectations

Bitcoin (BTC) rebounded to the $106,000 (USD) level, backed by news of a ceasefire in the Middle East and expectations of a rate cut by the Fed.

According to Cointelegraph on the 24th (local time), Bitcoin quickly bounced back to $106,000 after dropping to $98,500 the previous day. The news of a ceasefire agreement between Israel and Iran and increased market expectations for an early rate cut by the Fed contributed to this rebound.

Despite market volatility, the Bitcoin derivatives market remained relatively stable. During this price rebound, $193 million in Bitcoin long positions were liquidated, but this accounted for only 0.3% of total open interest (OI) in futures. The current leverage position volume stands at $68 billion, showing little change from last weekend.

Investors are increasingly betting on a short-term rate cut by the Fed. According to FedWatch, a rate forecasting tool provided by the Chicago Mercantile Exchange (CME), the probability of the Fed keeping the current 4.25% rate through November dropped sharply to 8.4% from 17.1% a week earlier, while the chance of the rate being cut to 3.75% or lower surged to 53% from 38% over the same period.

The market commented, "It is too soon to conclude that Bitcoin will reach $110,000 solely due to easing tensions in the Middle East," but also analyzed that "the recovery to the $100,000 level demonstrates robust institutional investor demand despite global uncertainty."

Meanwhile, as of 09:30 AM, BTC is trading at $105,178.99 on the Binance Tether (USDT) market, up 4.45% from the previous day.