Bitcoin is holding strong above $105,000 as the new week begins, despite growing fears of a bigger conflict between Israel and Iran. Traders are being cautious, and many are protecting their positions by buying more BTC puts, which now cost more than calls, showing increased fear of a market drop.
Over $1 billion in long positions have been liquidated recently, including a massive $200 million loss on Binance. Still, Bitcoin has stayed steady, helped by strong institutional buying.
Ethereum is also showing strength, up 2% and trading around $2,550. It found good support near $2,510 and is also seeing institutional inflows.
Glassnode Says BTC Is Still in a Healthy Bull Cycle
According to on-chain data from Glassnode, Bitcoin’s current cycle gain is 656%. While this is lower than past bull runs, over 1,000% in 2015–2018 and 2018–2022, it’s still impressive, especially now that Bitcoin’s market cap is much bigger. This suggests demand is still solid, even if short-term volatility is causing worry. While the Bitcoin price is still below the last ATH of $112K, the demand is not going down, though there is a slight caution in the market as of now.
What’s Happening in Crypto?
Amid rising geopolitical tensions and market uncertainty, several positive developments helped stabilize Bitcoin’s price this week. Michael Saylor’s advisory role in Pakistan’s crypto policy sparked optimism, as the country looks to create its own Bitcoin reserve and launch a national crypto council, boosting confidence, especially in Asia.
At the same time, Galaxy Research cooled fears over Bitcoin’s OP_Return spam concerns, with Alex Thorn calling the panic exaggerated and instead pushing focus toward meaningful upgrades like CheckTemplateVerify.
Adding to the positive momentum, Bybit announced its new decentralized exchange, Byreal, built on Solana, highlighting growing innovation in the DeFi space. Together, these updates helped support Bitcoin’s stability despite global war fears.
Current Market Sentiment
Gold is also rising, hitting $3,447 as investors look for safety. Japan’s Nikkei 225 stock index climbed 0.87%, showing mixed global reactions. Overall, the crypto market is showing resilience. With institutional support for Bitcoin, fresh government interest from Pakistan, and new DeFi projects like Byreal, the space is holding up well despite global uncertainty.
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FAQs
The crypto market is showing resilience. Bitcoin is stable above $105,000, Ethereum is up 2% around $2,550, and institutional interest remains strong despite geopolitical tensions and recent liquidations.
Traders are cautious, buying more BTC puts (showing fear of a drop) following over $1 billion in long liquidations. However, strong institutional buying is providing support.
Yes, Glassnode data indicates Bitcoin is in a healthy bull cycle with a 656% cyclical gain. Despite being lower than past runs, it shows solid demand given its larger market cap.
The decision to buy crypto depends on individual risk tolerance and investment goals. While the market shows resilience with institutional interest and growth, it remains volatile due to geopolitical tensions and regulatory uncertainties. Many analysts suggest a cautiously optimistic outlook for Bitcoin and Ethereum in 2025, with potential for long-term growth.
