Bitcoin Bounces Back After Iran-Israel Tensions — Can It Sustain?

Bitcoin price held steady above the $108,000 level over the weekend, giving investors a much-needed breather. Meanwhile, Ether (ETH) briefly surged above $2,500. The cryptocurrency market appears to have largely recovered from the losses caused by the recent Iran-Israel tensions, which had pushed Bitcoin below $100,000.

Markets Focus on Crucial Macroeconomic Data

This week is shaping up to be pivotal for the markets. Investors are closely watching critical U.S. data, including May job openings, the June nonfarm payroll report, and the unemployment rate. Peter Chung, Head of Research at Presto Research, commented, “This week will be decisive. If the economic data signals weakness, expectations for rate cuts could strengthen, pushing risk assets like crypto higher.”

Powell to Speak Amid Trump’s Criticism

Federal Reserve Chair Jerome Powell is set to speak on Tuesday at the European Central Bank (ECB) forum panel, alongside central bank governors from the UK, South Korea, and Japan. Last week, Powell stressed that the Fed is in no rush to cut interest rates. However, former U.S. President Donald Trump accused Powell of keeping rates “artificially high.”

Dollar, Tariffs, and Market Sentiment Under the Spotlight

Vincent Liu, CIO of Kronos Research, highlighted that investors are also monitoring developments around the upcoming July 8 tariff deadline in the U.S. Liu noted, “Bitcoin is climbing, but market conviction may be tested. While risk appetite is returning, any sudden macroeconomic shifts could reshuffle the entire board.“

Will the Crypto Rally Continue?

The Bitcoin Fear and Greed Index currently stands at 66, signaling a mood of “greed” and optimism in the market. Still, crypto investors should remain cautious, as the upcoming economic data releases could prompt the market to seek a new direction. Without offering investment advice, it is expected that volatility in crypto markets may increase in the coming days.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.