Bitcoin bulls eye $100k as inflation cools and Middle East tensions flare

Bitcoin taps a 50-day high above $95k as cooling U.S. inflation, fading ETF outflows and rising Iran–U.S. tensions revive its dual role as macro asset and geopolitical hedge.

Summary

Bitcoin rose above $95,000 on Tuesday, marking its highest level in 50 days, according to market data, as traders responded to U.S. inflation figures and escalating tensions in the Middle East.

Bitcoin climbs above $95k

The cryptocurrency’s advance accelerated following a U.S. State Department communication warning American citizens to “leave Iran immediately” and prepare for potential communication disruptions. The alert was issued as mass protests continued across Iranian territory and diplomatic rhetoric between Washington and Tehran intensified, according to State Department announcements.

The Consumer Price Index data released earlier Tuesday showed U.S. inflation remained stable, with prices continuing to rise but not accelerating. The figures suggested the Federal Reserve may not need to implement aggressive interest rate increases in the near term, analysts noted.

Bitcoin had experienced a correction in early January, with spot exchange-traded funds recording significant outflows. Investors who entered positions during the October rally closed positions at losses, pushing prices toward typical ETF cost bases, according to market observers.

Recent data indicated the selling pressure has subsided, with global buyers absorbing available supply while U.S. institutional purchases paused. The Coinbase Premium indicator turned negative but did not signal capitulation, market analysts said.

The cryptocurrency’s movement lifted other digital assets, with Ethereum, Solana and XRP posting gains on Tuesday, according to trading data.

Market participants have characterized Bitcoin’s price behavior as reflecting dual characteristics: sensitivity to macroeconomic conditions during stable periods and demand as an alternative asset during geopolitical uncertainty.

The cryptocurrency operates on a decentralized network outside direct government control, a feature that has historically attracted investor interest during periods of global instability, according to industry observers.

Analysts are monitoring ETF flows and geopolitical developments as potential factors influencing near-term price movement, with the $100,000 level identified as a psychological threshold.

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