Bitcoin climbed back above $107,000 after a sharp selloff triggered by Israel’s strikes on Iran and months of tariff-driven volatility, with traders viewing the rebound as confirmation that the market has absorbed both shocks.
The leading cryptocurrency reached $107,775 by June 17, 2025, recovering from a low of $102,822 hit after Israel launched strikes on Iran on June 13. By June 25, Bitcoin had retaken the $107,000 level as relief spread following a U.S.-brokered ceasefire that began around 04:00 GMT on June 24.
The recovery is notable not just for its speed but for the depth of the volatility window it closes. Bitcoin spent weeks under pressure from two distinct forces: a geopolitical conflict in the Middle East and a tariff regime that rattled risk assets globally.
Whether the move qualifies as a full recovery depends on the reference point. The rebound has erased the Iran war drawdown, but the broader picture includes months of chop tied to Trump’s tariff escalation, which makes a clean “highest since” label difficult to confirm from available data alone.
Iran strikes and Trump tariffs created a double volatility anchor
The selloff side of this recovery traces back to two events. Israel’s June 13 strikes on Iran sent Bitcoin below $103,000, triggering a broad crypto selloff. That conflict added a geopolitical risk premium on top of trade-policy uncertainty that had lingered since early April.
President Trump declared a national emergency over trade deficits on April 2, 2025, with a 10% baseline tariff taking effect April 5 and higher reciprocal tariffs for some countries following on April 9. The move was framed under IEEPA as a national and economic security measure.
Together, the tariff shock and the Iran war created the volatility window that traders now reference when they call the $107,000 rebound a recovery. The ceasefire announcement on June 24 removed the most acute risk, while tariff uncertainty has faded from headline-driving to background noise, at least for crypto markets.
Derivatives and sentiment held firm through the conflict
The rebound’s durability depends on whether market structure supports it, not just spot price. Early signs suggest the move is orderly. Bitcoin’s bounce to around $106,000 on June 23 liquidated roughly $193 million in bullish BTC positions, but derivatives markets stayed relatively steady rather than cascading into forced selling.
Sentiment never cracked. The Crypto Fear & Greed Index read 60, firmly in Greed territory, on June 15, just two days after the Iran strikes. That resilience contrasts with prior geopolitical shocks where sentiment collapsed into Fear within hours.
For traders watching the next 24 to 72 hours, the key question is whether spot can hold above $107,000 now that the ceasefire has removed the immediate catalyst. Orderly derivatives and firm sentiment support the case, but any renewed escalation in the Middle East or a fresh tariff headline could test the floor quickly. Meanwhile, broader market disruptions like the recent BlockFills withdrawal freeze serve as reminders that structural risks persist beyond macro headlines.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
