On the first day of the week, Bitcoin showed a significant increase, exceeding the $ 70 thousand level. However, all eyes in the market are now on the developments between the USA and Iran. US President Donald Trump announced that they suspended attacks on Iran’s energy infrastructure for five days. Trump stated that diplomatic meetings were productive during this period.
US-Iran Tension and Its Effects on the Market
Although Iranian officials denied allegations of direct talks, markets continued to rise in risky assets without taking these statements into account. While Bitcoin was hovering around the $71,000 range later in the trading day, it gained 3.8 percent in value in the last 24 hours. The mobility in cryptocurrencies was felt more clearly, especially in the altcoin market. Leading altcoins such as Ethereum and Solana increased by around 5 percent.
Bitcoin-related companies also got their share of the rally. Many publicly traded Bitcoin mining companies in the US have attracted the attention of investors due to their close relationship with artificial intelligence technologies. Hut 8 shares rose more than 11 percent, while Bitfarms, Cipher Mining, CleanSpark, Riot Platforms and TeraWulf shares rose between 6 and 7 percent.
Traditional Markets and Expert Commentary
The positive atmosphere in crypto markets was also reflected in traditional stock markets. The day ended with a 1.2 percent increase in S&P 500 and Nasdaq indices. The temporary decrease in tension between the USA and Iran led to a decrease in the pressure in the energy market.
“A new threshold has been created in the macro framework; what will happen in the next five days may create more room for action,” commented Jasper de Maere, who manages Wintermute over-the-counter markets.
De Maere shared the opinion that inflation concerns may decrease if maritime traffic in the Strait of Ormuz returns to normal and the oil price stabilizes. In this case, the revival of interest rate cut expectations may have a positive impact on the cryptocurrency market.
In the same evaluation, it was stated that Bitcoin could rise again to the range of 74 thousand to 76 thousand dollars, because this level has served as a resistance point in recent weeks.
However, if there is an unexpected interruption in the talks between the USA and Iran or if there is a problem in energy supply again, there is a risk that oil prices will rise again. It was emphasized that in such a situation, Bitcoin could be pulled back to the 65 thousand dollar range.
