Why Bitcoin Is Ignoring War and Inflation to Hit New Highs

Bitcoin is showing remarkable resilience as it trades near $105,352 today, just 2.12% below its all-time high of $111,970 set on May 22, 2025. Despite intensifying Middle East tensions and persistent inflation concerns, the market continues its upward trajectory. So, why bitcoin is ignoring war and inflation has become one of the most pressing questions in the crypto world.

Key Drivers of Bitcoin’s Price Strength

Softer CPI Data Fuels Optimism

The U.S. Consumer Price Index (CPI) came in lower than expected in early June, reinforcing hopes that the Federal Reserve might shift to a more dovish stance. As inflation shows signs of easing, risk assets, including Bitcoin, are experiencing renewed interest.

Institutional Demand at Record Highs

According to SosoValue, Bitcoin ETFs saw inflows of $412 million on 16 June and $431 million in a single day last week. The total assets under management in Bitcoin ETFs have now crossed $132 billion, highlighting the growing institutional appetite for crypto assets.

BTC Spot ETFs flow data — **Bitcoin Spot ETFs Flow data by SoSoValue**

Dollar Weakness

The U.S. dollar has declined over 9.1% year-to-date, pushing investors toward alternatives like Bitcoin and gold. A weaker dollar makes Bitcoin more attractive as a hedge against fiat devaluation.

Bitcoin Withstands Geopolitical Pressure

Middle East Tensions and Market Liquidations

Despite regional conflict in the Middle East leading to over $1.15 billion in crypto market liquidations on June 11, Bitcoin rebounded sharply. This demonstrates how the impact of war on bitcoin price is being increasingly muted by broader market fundamentals.

Bitcoin Rebounds from $102K Dip

Bitcoin briefly dropped to $102,664 following geopolitical escalations but quickly regained footing to close near $107,000, showing strong investor confidence even in volatile conditions.

Technical Analysis and Market Sentiment

Resistance and Support Levels

Bitcoin is now facing resistance at its all-time high of $111,970, with strong support between $105,000–$107,000. If it breaks above, analysts predict a move toward the $130K–140K range.

Spot-Driven Momentum

Unlike previous rallies driven by leverage, this surge is powered by spot market flows, primarily from ETF investors. This trend makes the rally more sustainable and less prone to sudden crashes.

Why Bitcoin Is Ignoring War and Inflation

Let’s break down the reasons behind this surprising market behavior:

Favorable macro conditions: Inflation is slowing, and Fed policies are expected to support risk assets.
Strong institutional inflows: ETFs are absorbing supply and creating upward pressure.
Dollar weakness: Fiat devaluation pushes capital into decentralized assets.
Geopolitical resilience: Despite regional instability, Bitcoin bounces back quickly.

These factors collectively explain why bitcoin is ignoring war and inflation and reaching new price milestones.

Market Analysts Weigh In

Bitcoin touched $110,400 on June 11 after CPI data release and ETF inflows.
Analysts from Investopedia emphasize the growing disconnect between macro risks and crypto price action.
TradingView charts show growing bullish sentiment with RSI nearing overbought levels but MACD showing strength.

What’s Next for Bitcoin?

Short-Term Risks & Long-Term Outlook

Expect volatility around geopolitical headlines and upcoming economic data releases. Key support is near $105,000, with downside risk toward $100,000 if risk sentiment deteriorates.

If current momentum continues, Bitcoin may soon break through its previous ATH and target $130,000–140,000 levels. The sustained ETF demand and macro backdrop support this bullish thesis.

Final Thoughts

Bitcoin’s ability to maintain momentum despite inflationary pressure and geopolitical unrest signals a maturing asset class. The question of why bitcoin is ignoring war and inflation is answered through a combination of institutional confidence, macroeconomic shifts, and market resilience.

Traders should monitor CPI, ETF inflows, and global events—but for now, the trend remains bullish.

Disclaimer!! The information provided by CryptopianNews is for educational and informational purposes only. It should not be considered financial or investment advice. Cryptocurrency markets are highly volatile and speculative, and investing in them carries inherent risks. Readers are advised to conduct their own research and consult with a qualified financial advisor before making any investment decisions.

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RIZ A

Content writer at Cryptopian News

Riz-A is a seasoned blockchain content writer with a passion for demystifying complex concepts and making cutting-edge technology accessible to a broader audience. With years of experience in the blockchain and cryptocurrency space, Riz-A has a proven track record of creating engaging, informative, and thought-provoking content.