Bitcoin’s rebound to $107,000 primarily resulted from reduced geopolitical risk as Middle East tensions eased, reigniting investor risk appetite. The de-escalation triggered broad-based rallies across risk assets including equities and commodities, with crypto benefiting disproportionately due to its high beta nature. This reversal erased earlier losses triggered by safe-haven flows during the conflict.
Institutional accumulation accelerated the rebound, evidenced by Coinbase’s 12% stock surge following regulatory developments. Renewed institutional interest reflects growing recognition of Bitcoin as a macro asset with inflation-hedging properties. Market structure also contributed, with technical support near $100,000 triggering algorithmic buying.
The rebound demonstrates Bitcoin’s evolving correlation with traditional markets during risk-on periods. Analysts note that while crypto still reacts to macro shocks, recovery speed has increased due to deeper liquidity and institutional participation. This pattern suggests maturing market dynamics where traditional risk indicators increasingly influence crypto valuations.
