“Coupled with strong and consistent inflows to spot Bitcoin ETFs, persistent institutional demand drives momentum whenever sell pressure abates,” said Perfumo.

Brett Sifling, wealth manager for Gerber Kawasaki Wealth & Investment Management, also chimed in, offering his input via email.

“There are quite a few reasons why Bitcoin bounced back and rallied this week,” he stated.

“First, we believe the main driver of this bounce was that the geopolitical tension started easing (even temporarily) due to an Israel and Iran ceasefire. With a hopeful end to the conflict, it seems that investors were looking to reenter risk-on assets like Bitcoin,” Sifling continued.

“Second, the Fed hinted this week that there were possible rate cuts in the future. Market participants also seemed happy that the Fed is taking a more relaxed stance towards crypto related banking, along with the GENIUS act progressing through the U.S. government process,” he added, speaking to recent policy developments.

“Lastly, it also seems that there is strong continued institutional flows into Bitcoin ETFs. I’m seeing data that BTC ETFs have posted 10 straight weeks of positive inflows, suggesting that there is still a lot of continued demand,” Sifling concluded.

Dom Kwok, cofounder and COO of educational platform EasyA, also weighed in, stating via email that bitcoin’s recent recovery has materialized “as broader market anxiety begins to ease, triggered by President Trump’s signalling of a ceasefire between Israel and Iran.”

“Over the weekend, escalating tensions in the Middle East triggered a sharp pullback, with BTC briefly dipping below $100,000 as investors rushed to reduce exposure to risk assets. But now, with no immediate escalation and energy markets stabilising, confidence is gradually returning,” he continued.

“President Trump’s declaration of peace signals that the US is reluctant to become entangled in a regional conflict. This increases the likelihood of broader stability, especially if Israel and Iran also step back,” Kwok added.

“Greater certainty has encouraged investors to return to BTC,” he noted.

Either way, market observers need to look at the bigger picture, Kwok emphasized, stating that “The broader trend remains most important.”

“BTC consolidating above six figures prior to the dip was already a strong signal,” he noted. “Now, with this rebound, it’s showing resilience.”

“For long-term holders, such swift declines often prove to be little more than a blip on the chart. As always, volatility grabs the headlines, but it’s the bigger picture that drives the gains.”