- Bitcoin rises above $107,000, outshining traditional markets amid geopolitical tensions in the Middle East.
- The recovery of Bitcoin proves its role as a safe-haven asset during periods of geopolitical tensions.
- Altcoins underperform as Ethereum drops 17%, while Bitcoin continues to dominate the cryptocurrency market.
Bitcoin (BTC) is above $107,000, compared to traditional markets rattled by global tensions in the Middle East. This was an increase over a volatile weekend where Bitcoin had briefly fallen by around $98,000, then rose back to over $107,000. This rebound also solidified Bitcoin as a haven asset to geopolitical uncertainty as opposed to the distress of traditional assets.
As a Binance Research report released June 27 reported, Bitcoin was performing better even than the S&P 500, which reported a 2.56% increase, and largely flat gold. Early-week gains in oil prices were also more than offset by weaker prices as uncertainty surrounding oil availability increased.
The U.S. dollar fell to a three-year low after President Trump criticized Federal Reserve Chairman Jerome Powell. These actions indicated more fundamental instability, but Bitcoin recovered very fast, proving its stability.
Source: TradingView
Also Read: Bitcoin Nears $108,000 Resistance as Investor Accumulation Remains Mixed
Bitcoin’s Resilience Amid Crisis
The resilience of BTC in a period of crisis keeps reaffirming its versatility as a risk asset and as a hedge against volatility. The cryptocurrency has demonstrated that it can outperform traditional markets this week. Increased institutional appetite can be seen with a $3.9 billion capital absorption of Spot BTC ETFs so far this month.
But on-chain data indicating that large BTC (more than 10,000 BTC) holders are still net sellers, whereas middle wallets are hoarding, indicates to traders awaiting a breakout over commitment to a long-term rally.
As BTC succeeded, altcoins suffered. Ethereum (ETH) lost 17% this weekend and could not regain all of its losses, hitting a low of $2,480, lower than its opening price. Solana and Avalanche (AVAX) were other altcoins that performed poorly with slight gains.
Source: TradingView
Such stagnation points to a significant contrast between BTC and altcoins. The lack of a centralized catalyst has made altcoins look disjointed and unable to ride with BTC in its rally.
Shift in Altcoin Market
This represents a significant shift in the altcoin market. BTC rallies in the past have tended to spill over to altcoins, although this has not happened in 2025. Altcoins are at a standstill without a direction to follow and conflicting power to drive expansion.
The extent of the strength of BTC is evident, but its success is a concern for altcoins in the future. BTC might require even more than stability to help altcoins prosper. The cryptocurrency market requires a new catalyst to restore its interest. Altcoins will stay on the sidelines until then, as BTC dominates.
Bitcoin is seen as a robust hedge currency in times of geopolitical volatility, whereas Ethereum has still not become as strong. A study by BlackRock in September last year revealed that BTC averagely a returned 37% in 60 days after such incidences.
Source: BlackRock
The strong recovery after a geopolitically eventful weekend points towards an overall positive situation. Fed has been cautious, but market participants seem to be turning bullish with easing geopolitical tensions, and the other central banks being dovish.
There is an increase in global liquidity. It is unclear when altcoins will step forward and compete with Bitcoin. Bitcoin is establishing itself as a conventional macro hedge asset.
Source: Trading Economics
Also Read: Bitcoin Miners Hold 4,000 BTC Despite 52% Revenue Drop