Why is Bitcoin Price Up Today?

After starting near $110,300 on June 9, it fell sharply by June 11 and 12, dropping to around $105,700. The decline slowed briefly as the price edged slightly lower to $105,720. This stretch marked the steepest decline of the week.

There were brief attempts to recover. On June 13, the price climbed to approximately $106,120. Despite this movement, the broader trend remained downward. By June 15, Bitcoin traded around $105,600, before moving higher to $107,196 on June 16. Bitcoin price net weekly gain this week came in at just over 1%.

These were the two factors that may have affected Bitcoin price:

1. Bitcoin reacts to Iran-Israel tensions

Rising conflict between Iran and Israel introduced uncertainty across financial markets, including crypto. Following military actions, Israel’s “Operation Rising Lion” and Iran’s “Operation True Promise III”, Bitcoin fell by roughly 5.5%, from $109,000 to $102,800.

Despite the pressure, sentiment remained relatively steady. While fear increased, a wider market panic didn’t take hold. Institutions continued to accumulate. On June 16, MicroStrategy added another 10,100 BTC. That same week, spot Bitcoin ETFs recorded $1.3 billion in inflows. Volatility persisted, but structural interest held steady.

This environment reopened discussions about Bitcoin’s status during global stress. Gold and U.S. Treasuries strengthened but Bitcoin declined, signaling the latter continues to behave like a risk-on asset during geopolitical shocks.

2. Inflation data adds uncertainty

Recent U.S. inflation figures delivered mixed messages. The Consumer Price Index (CPI) showed a 2.4% annual rise, slightly below expectations, prompting a temporary bounce in crypto prices. Speculation about potential interest rate cuts began to circulate again.

The next day, the Producer Price Index (PPI) contradicted that sentiment with a 2.6% increase, higher than forecasts. Markets responded by pulling back, as traders adjusted positions amid the unclear outlook.

Amid these developments, former President Donald Trump criticized Federal Reserve Chair Jerome Powell during a public appearance. He argued that rate cuts could save the government significant amounts on debt servicing and questioned Powell’s stance on maintaining current levels.

Market sentiment heading into late June

Analysts remain cautiously optimistic. Some expect a possible summer rally, with Bitcoin pushing toward $120,000 or higher, provided it maintains support near $105,000. Retail investor sentiment continues to lean positive, though recent volatility has prompted some to take a more passive stance. Institutions are still active, but more measured. While certain ETF outflows suggest repositioning, total holdings across spot Bitcoin ETFs remain above 1.13 million BTC. That points to a sustained long-term outlook even as short-term caution grows.

Heading into the second half of June, the broader setup reflects guarded optimism. Favorable inflation trends, continued liquidity, and wider crypto adoption provide support for the current price levels. However, risks persist. Escalating geopolitical issues, unexpected regulatory developments, or large-scale institutional selling could introduce new pressure.

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