Surpassing the $106,000 mark for the first time this month, Bitcoin saw a moderate uptick in trading early Wednesday, buoyed by fading tensions between Israel and Iran. The cryptocurrency market responded cautiously to a U.S.-brokered truce that has, at least temporarily, eased geopolitical anxiety and revived risk appetite among investors.

Optimism over the ceasefire sent Bitcoin up by 0.7%, hitting $106,160.1 during early morning trading. Despite the gain, BTC remains within the broader $103K–$108K range that has characterized much of June’s sideways movement. The rally comes amid speculation that further de-escalation could set the stage for a more sustained bullish trend in digital assets.

Tensions had flared earlier this week after sporadic ceasefire violations, but by midweek, airstrikes appeared to have ceased, restoring some calm to the region. Market sentiment, however, remains fragile as traders eye any signs of renewed hostilities. The highly speculative nature of crypto assets keeps them especially sensitive to political developments.

Meanwhile, the broader crypto space showed more muted performance. Ethereum gained just 0.5%, trading at $2,433.45, while XRP and Solana remained largely flat. Cardano slipped 1.8%, and meme tokens like Dogecoin and $TRUMP faced mild pullbacks, falling 0.8% and 2.1% respectively.

In a separate development, shares of Guotai Junan International (HK:1788) surged over 100% after its Hong Kong division secured regulatory approval to offer crypto trading. The move follows a wave of pro-crypto legislation in the region, positioning Hong Kong as a leading hub for regulated digital asset investment — in sharp contrast to mainland China’s continuing ban.

Hong Kong’s progressive stance, combined with geopolitical de-escalation in the Middle East, appears to be nurturing cautious optimism across crypto markets. Yet analysts warn that volatility remains the rule, not the exception.

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