Bitcoin Recovers Amid Israel-Iran Conflict, Markets Await Fed Cues

Bitcoin firmed on Monday, recovering from weekend losses that pushed it to a one-week low. The rebound came as investors reacted to renewed conflict between Israel and Iran, which has broadly dented global risk appetite. The world's largest cryptocurrency rose 0.5% to $106,581.8 by 01:55 ET (05:55 GMT), bouncing back from lows of nearly $102,000.

Broader crypto markets tracked Bitcoin's gains. However, geopolitical tensions and macro uncertainty are expected to keep sentiment fragile in the days ahead.

Israel-Iran Conflict Puts Pressure on Risk Assets

The weekend saw a fresh wave of hostilities between Israel and Iran. Israel reportedly targeted several Iranian nuclear facilities, prompting a retaliatory strike from Tehran on key Israeli cities, including Tel Aviv.

U.S. President Donald Trump commented that Israel and Iran may have to “fight it out,” downplaying the likelihood of a ceasefire. Iran has since suspended its scheduled nuclear talks with the U.S., deepening fears of a prolonged escalation.

Crypto markets, which are especially sensitive to geopolitical shifts, are likely to remain volatile if the situation worsens.

Federal Reserve Decision Looms Large

The second major driver for crypto this week is the Federal Reserve's upcoming policy meeting. While no change in interest rates is expected, traders are eyeing Chair Jerome Powell's tone for guidance on the rate path ahead.

A dovish signal could offer support to crypto, which often benefits from lower interest rate expectations. Bitcoin's resilience in uncertain macro environments has led many investors to use it as a portfolio hedge — a shift that can be explored using the Cryptocurrency Historical Data API, which provides daily open, high, low, and close data for Bitcoin and other top digital assets.

Trump's Crypto Wealth Raises Eyebrows

According to Reuters, Donald Trump earned over $600 million in 2024 from crypto, gold clubs, and licensing deals. His crypto-linked project World Liberty reportedly netted him $57.35 million through token sales. These disclosures have triggered criticism over potential conflicts of interest, as several policy decisions during his administration boosted crypto valuations.

The former president's rising crypto involvement mirrors a broader trend of mainstream acceptance — with price movements reflecting both institutional activity and political developments. Real-time updates on top-performing cryptocurrencies can be tracked via the Cryptocurrency Daily API, which offers up-to-date pricing across major coins.

Market Snapshot: Bitcoin Leads, Altcoins Follow

• Ether (ETH) rose 2.7% to $2,603.70

• XRP gained 1.3% to $2.1815

• Cardano (ADA) and Solana (SOL) rose 2.1% and 6.9% respectively

• Dogecoin (DOGE) added 0.7%, while meme coin $TRUMP rose 1.1%

Despite the positive momentum, crypto markets remain rangebound, reflecting uncertainty over both geopolitical stability and monetary policy direction.

Final Word

With conflict in the Middle East and a pivotal Fed meeting on the horizon, Bitcoin and its peers remain tightly linked to macro headlines. Investors should watch for further updates, particularly around Fed commentary, which could set the tone for crypto markets heading into the second half of June.