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Bitcoin Surges Past $100,000 Amid Geopolitical Uncertainty, Signaling Strong Bullish Momentum

Bitcoin Surges Past $100,000 Amid Geopolitical Uncertainty, Signaling Strong Bullish Momentum

Published:
2025-08-14 05:16:28
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[TRADE_PLUGIN]BTCUSDT,BTCUSDT[/TRADE_PLUGIN]

Bitcoin has once again proven its resilience as a digital asset, swiftly recovering from a brief dip below $100,000 amid escalating geopolitical tensions. The cryptocurrency rebounded sharply, gaining 4.4% to trade near $104,000 by Monday, according to Brave New Coin data. This recovery aligns with a broader risk-on sentiment across financial markets, showcasing Bitcoin's growing role as a hedge against uncertainty. Traditional safe-haven assets like gold and oil also saw movements, but Bitcoin's rapid bounce-back highlights its unique position in the modern financial landscape. As of August 2025, the cryptocurrency continues to demonstrate strong bullish momentum, reinforcing its appeal to both institutional and retail investors.

Bitcoin Recovers Swiftly Amid Geopolitical Tensions as Risk-On Sentiment Prevails

Bitcoin demonstrated remarkable resilience following a brief dip below $100,000, its first since May, as geopolitical tensions escalated over the weekend. The cryptocurrency rebounded sharply, gaining 4.4% to trade NEAR $104,000 by Monday, according to Brave New Coin data. This recovery mirrored a broader risk-on sentiment across financial markets.

Traditional safe-haven assets like Gold and oil defied expectations, with crude prices falling 4% despite Iran's threats to close the strategic Strait of Hormuz. Market participants appear to be pricing in a contained regional conflict, with the Kobeissi Letter noting the counterintuitive market reaction to geopolitical developments.

Bitcoin Recovers to $104k After Volatile Session Amid Geopolitical Tensions

Bitcoin surged back above $104,000 following a brief dip below six figures as markets digested news of Iran's non-lethal missile strike on a U.S. base in Qatar. The digital asset demonstrated characteristic volatility, swinging from an intraday low of $99,500 to $103,801.74 within hours, reflecting 4.5% gains on the day.

The measured Iranian response and prior backchannel communications with Washington appeared to signal de-escalation, calming initial market jitters. Liquidity providers quickly absorbed selling pressure, with Binance order books showing the BTC/USDT pair stabilizing near $104,000 by evening in London.

Market analysts note Bitcoin's resilience, maintaining its six-figure foothold despite Middle East tensions. Bitfinex researchers highlight $94,000-$95,000 as critical support, while pointing to consistent ETF inflows creating a programmatic price floor.

Bitcoin Price Holds Near Critical Support as Global Liquidity Rises

Bitcoin teeters at a pivotal juncture, testing key support levels amid conflicting macroeconomic and geopolitical signals. The cryptocurrency's price action reflects a tug-of-war between bullish liquidity trends and bearish technical indicators.

Global M2 money supply expansion continues to fuel Optimism for a potential breakout. Historical patterns suggest a strong correlation between rising liquidity and Bitcoin's price appreciation, with some analysts eyeing a $120K target.

Geopolitical tensions injected volatility into markets after U.S. strikes on Iranian nuclear facilities. Bitcoin briefly dipped below $98K, breaching both the 50-day EMA and May's swing low. The asset now faces critical tests at the $100K support level.

Long-term holders appear undeterred, accumulating positions as exchange reserves dwindle to record lows. This divergence between short-term price action and long-term accumulation patterns underscores Bitcoin's complex market dynamics.

Bitcoin Records 2nd Consecutive Week of Cash Inflows Amid Market Uncertainty

Bitcoin investment products have attracted $1.1 billion in inflows for the second consecutive week, pushing year-to-date inflows to $12.7 billion. The U.S. led with $1.25 billion in net inflows, while Hong Kong and Switzerland saw minor outflows.

Despite institutional demand, bitcoin faces technical resistance near $110,000-$112,000. The asset traded at $104,100 on June 24, up 3% intraday, but shows potential bearish signals including a macro double-top pattern and RSI divergence.

Over $12 billion in short liquidations loom as a risk factor. Analysts remain divided on whether current inflows signal impending breakout or precede further downside.

Bitcoin Market Evolution: Patience Outperforms Short-Term Trading

Long-term Bitcoin holders are reaping significant profits while short-term traders face record losses, signaling a pivotal shift in market dynamics. Analyst Rafaela Romano notes this trend underscores the growing advantage of patience in cryptocurrency investing.

Historical data reveals LTHs consistently outperformed STHs, but the current cycle shows an unprecedented divergence. Where previous cycles saw LTH profits of 97%, 94%, and 87% with STHs capturing 63%, 57% and 38% respectively, current conditions show LTHs commanding 73%, 75% and 69% of profit supplies.

The market's volatility increasingly rewards disciplined holding strategies over speculative trading. This paradigm shift suggests a maturation in Bitcoin's market behavior, with long-term positioning becoming the dominant winning strategy.

Bitcoin (BTC) Faces Downward Pressure Amid Middle East Conflicts

Bitcoin's market dynamics have shifted as geopolitical tensions in the Middle East influence trading conditions. The cryptocurrency broke out of its recent range to the downside, with Glassnode noting reduced overheating and weakened demand. A brief dip to $98,000 over the weekend highlighted growing fragility, though spot markets showed mild stabilization.

Futures markets reflected cautious sentiment, with open interest dipping slightly while funding rates held steady. The Perpetual CVD indicator turned sharply negative, signaling aggressive sell-side flows. Options markets maintained elevated open interest, but volatility spreads and skew metrics pointed to a recalibration in risk appetite—calls still favored over puts, yet tail-risk pricing softened.

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