Bitcoin grows amid geopolitical tensions in the Middle East

The cryptocurrency market has sharply recovered from the previous sell-off amid the escalating situation in the Middle East: Bitcoin BTC $67,536.58 Mezo Wrapped BTC 1.18% Market capitalization $37.05 million VOL. 24 hours $2.21 billion has risen to almost $ 70,000, Ethereum ETH $1,959.06 Bridged Ether (StarkGate) 0.94% Market capitalization $45 million VOL. 24 hours $1.23 billion has returned to $ 2,065, and the total market capitalization has exceeded $ 2.38 trillion. In traditional markets, the Dow Jones dropped 140 points, the Nasdaq 100 was in the black, and oil prices did not show the expected jump.

Santiment analysts recorded a sharp shift in sentiment: when BTC was threatening to fall below $ 65,000, the share of positive signals in social data increased dramatically. Within two hours, bitcoin added about 7% and reached $ 69.9 thousand, after which it encountered resistance near $ 70,000. Santiment interprets this momentum as a short-term reaction of retail investors to geopolitical news.

Among the reasons for the rebound is the rotation of capital: liquidity flowed from other assets to BTC and ETH, as well as to XRP XRP $1.35 XRP -0.19% Market capitalization $82.58 billion VOL. 24 hours $0.24 billion and SOL SOL $83.90 Binance-Peg SOL 0.24% Market capitalization $92.53 million VOL. 24 hours $0.43 billion . Additionally, the «sell on rumors — buy on facts» scenario worked: investors sold cryptocurrencies before the escalation, and after the economic consequences looked more contained, they began to buy back. The article mentions the probability of a ceasefire, which is estimated to have increased from 46% at the end of March to 66% at the end of April.

The positive background was also supported by US macro data: the S&P Global Manufacturing PMI rose from 50.4 to 51, and the ISM rose from 51.7 to 52.4. Analyst Michael van de Poppe believes that the BTC/gold pair has formed a bottom due to bullish divergence on the daily and weekly charts, and predicts a possible rotation of capital from gold and silver to stocks and bitcoin. An additional factor was corporate purchases: Сейлор" href="https:>Michael Saylor 's company acquired more than 3,000 BTC, and Tom Lee’s BitMine added more than 50,000 ETH.

At the same time, experts warn that the current movement may be more of a «relief rally» than the beginning of a new sustainable trend. If emotions and positioning are the main drivers, there is a risk of a dead-cat bounce before a new decline. The future direction of the market will depend on changes in investor sentiment, macro data, and the geopolitical situation in the coming days.