Bitcoin extends recovery as geopolitical tensions ease

Bitcoin Extends Recovery as Geopolitical Tensions Ease; ETFs Still a Headwind

Today market analysis on behalf of Milad Azar Market Analyst at XTB MENA

Bitcoin rose back above USD 110,000 on Monday, extending its rebound from last week’s lows as risk appetite improved on hopes of a de-escalation in US–China trade tensions. The cryptocurrency has posted gains for three consecutive sessions as investors reacted to signs of renewed diplomatic engagement, improving investor sentiment and bolstering riskier assets like Bitcoin. US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are set to meet in Malaysia this week, while President Donald Trump has confirmed plans to meet Xi Jinping in South Korea in two weeks.

Liquidations support the bullish momentum, with USD 332 million in short positions wiped out over the past 24 hours, compared with USD 161 million in longs.

Adding to the bullish tone, Japan is accelerating digital-asset integration. The Financial Services Agency (FSA) is weighing reforms to allow domestic banks to hold Bitcoin and other crypto assets. The shift underscores rising institutional acceptance, supported by a domestic market that now counts more than 12 million crypto accounts.

However, ETF flows remain a drag. US spot Bitcoin funds logged an additional USD 366 million outflow on Friday, bringing weekly redemptions to USD 1.229 billion, the largest setback in several weeks. If outflows persist, they could cap Bitcoin’s upside despite improving sentiment.

Zaid Barem / ymm