The downward trend seen in the cryptocurrency markets in the first hours of the day was reversed when Israeli Prime Minister Benjamin Netanyahu announced that he had instructed his cabinet to start negotiations with Lebanon. This step by Netanyahu came after it was revealed that US President Donald Trump requested a reduction in the bombardment regarding the ceasefire declared in Lebanon.
Bitcoin gained approximately 3 percent in value following these developments. The price reached $72,300 and is trading with a 2 percent increase in the last 24 hours. Losses in the first transactions were also regained in the US stock markets. A 0.65 percent increase was observed in the Nasdaq index. On the oil side, although the price of WTI type crude oil rose to $103 during the day, it soon fell to $98.60.
Instant reaction in markets
Bitcoin performed stronger than mainstream cryptocurrencies following the announcement. Ethereum (ETH), Solana (SOL) and XRP reacted slightly with gains of less than 1 percent. Thus, Bitcoin stood out compared to the overall market.
The tendency for close movements between technology stocks and Bitcoin has been weakening recently. The iShares Expanded Tech-Software ETF (IGV), which focuses on the software sector, fell 4 percent and approached the important support point at $76. This region stands out as a level that the ETF has tested and recovered several times before.
Latest situation in prices and correlation
While Bitcoin gained 9 percent in value in the last month, IGV decreased by 12 percent. This divergence in price movements was also reflected in the Correlation coefficient. According to the 20-day average, the correlation coefficient between Bitcoin and IGV decreased to 0.34, indicating that the previous close interaction had diminished.
This movement in the markets once again revealed that geopolitical tensions and statements from leaders can affect cryptocurrency and traditional asset pricing in a short time.
Israeli Prime Minister Netanyahu stated that he instructed the council of ministers to start negotiations with Lebanon as soon as possible. US President Donald Trump requested Netanyahu to reduce military actions.
Immediately following these statements, upward movements were observed in both cryptocurrency markets and traditional financial instruments. It is noteworthy that Bitcoin is ahead of the overall market.
With the weakening of the correlation between the cryptocurrency market and technology stocks, a more independent course in price movements stands out compared to the past. It seems that investor interest has shifted to different areas in the short term due to the effect of fluctuation.
