Improved risk appetite followed reports of potential diplomatic progress in the Middle East. President Trump’s statement regarding U.S. restraint toward Iran helped soften oil prices, which in turn pressured the dollar and offered support to crypto markets. Despite the rebound, analysts remain cautious about the broader macro environment. Colin Basco, a strategist at Coinbase Institutional, noted that if 10-year Treasury yields push toward 5.5%, the current period of price consolidation could extend. He identified $72,000 as a potential entry point for buyers should the price retrace.

Market participants largely attributed this week’s decline to a deleveraging event. However, the ecosystem shows signs of stabilization elsewhere, specifically in mining operations. As bitcoin prices recover, the profitability of miners is improving, reflected by a rising network hashrate. Data from Blockchain.com indicates the hashrate climbed to 980 million terahashes by Oct. 7, adding 20 million terahashes over the week. Julian Pineda of StoneX noted that this trend is typical, as price appreciation draws more computing power to the blockchain, signaling renewed confidence among network participants.