Bitcoin and most altcoins rose on Monday, June 16, as fears surrounding the ongoing Israel–Iran conflict subsided and accumulation continued.
Bitcoin (BTC) jumped to $107,000, its highest point since June 12, while the market capitalization of all cryptocurrencies rose to $3.34 trillion. Some of the top gainers were tokens like Jito (JTO), SPX6900 (SPX), Hyperliquid (HYPE), and Kaspa (KASPA).
The crypto market’s rally coincided with the rebound of the U.S. stock market and the retreat of crude oil prices. Futures tied to the Dow Jones rose by 225 points, while those linked to the Nasdaq 100 rose by 175 points. Oil dropped by over 1%.
Bitcoin and other crypto prices rose as fears of a widespread crisis in the Middle East subsided. The two countries have continued launching missile attacks, but analysts see the crisis being contained and not drawing in other countries like Russia and China. In a note to Bloomberg, a CMC Markets analyst said:
“The market currently anticipates a limited conflict, though there is little indication that hostilities will end quickly. It is expected that fighting will continue unabated this week, albeit on a limited scale.”
Historically, stocks and crypto prices plunge after a major “black swan event” and then bounce back as fears subside. For example, Bitcoin and most altcoins plunged in March 2020 after COVID was declared a global pandemic and then bounced back afterward.
Similarly, crypto prices plunged after Donald Trump’s Liberation Day speech, only to bounce back afterwards. Bitcoin fell to $74,500 in April and then reached a new all-time high of $111,900 in May.
Bitcoin accumulation continues
Bitcoin and other crypto prices have jumped as signs emerged that investors are still accumulating the coin. Michael Saylor’s Strategy bought 10,100 coins last week, bringing its total holdings to 592,100.
The 10,100 weekly figure is notable because mining companies are only producing 3,150 coins per week.
Other companies and ETFs have continued adding Bitcoin. Metaplanet has just passed the 10,000 mark in terms of Bitcoin holdings, while GameStop and Trump Media are in an accumulation mode.
Crypto prices also jumped as investors waited for the upcoming Federal Reserve decision on Wednesday. A dovish tone, especially after last week’s soft US inflation data, will be bullish for Bitcoin and most altcoins.
