Bitcoin rebounded late Sunday, climbing back above the USD 101,000 mark after falling sharply over the weekend amid rising geopolitical tensions.
The recovery followed reports of US and Israeli airstrikes targeting Iranian nuclear facilities, which had initially triggered a broad sell-off across the cryptocurrency market.
Bitcoin had earlier dropped below USD 99,000, marking its lowest point in over a month. Ether also experienced a sharp decline, plunging over 10 per cent at one stage.
Other major cryptocurrencies, including Solana, XRP, and Dogecoin, followed suit, contributing to a widespread downturn in the digital asset space.
The market sell-off was sparked by growing concerns over escalating conflict in the Middle East, prompting a temporary shift away from risk assets. However, by late Sunday, crypto traders appeared to regain confidence, driving a recovery in prices.
The rebound also came in the context of slowing capital flows into spot Bitcoin exchange-traded funds (ETFs).
According to CoinGlass data, more than USD 1.04 billion was invested in spot Bitcoin ETFs between Monday and Wednesday last week. In contrast, inflows dropped sharply towards the weekend, with no net change on Thursday and only USD 6.4 million added on Friday.
Analysts note that the decline in ETF inflows coincided with two key developments: US President Donald Trump’s early departure from the G7 summit and Washington’s launch of a two-week review of its Iran policy options.
Despite these uncertainties, Bitcoin’s late-weekend rally reflects renewed investor appetite for digital assets, particularly amid concerns about traditional financial and geopolitical risks.