Bitcoin surged to a three-week high of $72,380 following news of a temporary ceasefire between the US and Iran, easing geopolitical tensions. Analyst sentiment suggests this could be a short-term catalyst, but Bitcoin remains within a long-term consolidation pattern, with its future trajectory heavily dependent on macroeconomic factors like oil prices and Federal Reserve policy.
Bitcoin prices reached $72,380 in early Asian trading on Wednesday, marking a three-week high. The move followed an announcement of a two-week ceasefire between the US and Iran, contingent on reopening the Strait of Hormuz. Jeff Mei, COO at the BTSE exchange, stated that the possibility of a bull market depends on oil supply recovery and its impact on inflation.
Santiment reported that its social sentiment data signals crowd optimism that this news could conclude the conflict. Analyst ‘Sykodelic’ mentioned that Bitcoin reclaimed a short-term trend by closing above the 50-day exponential moving average. RealVision’s chief analyst Jamie Coutts said it was a bullish move but remained cautious on the medium-term outlook.
“If inflation falls enough and the Fed decides to resume rate cuts again, a rally in crypto prices could occur. Even if the Fed doesn’t cut rates and growth and employment continue to reflect a strengthening economy, crypto markets could also rally.” The Kobeissi Letter commented that the market’s reaction is very telling against a backdrop of expanding AI and rising inflation.
Ether prices also gained around 6% to reach $2,250, though it faces heavy resistance. Some altcoins saw gains, including Zcash which surged 28%, while others like Tron declined. Total cryptocurrency market capitalization reached $2.52 trillion, its highest level in three weeks. Bitcoin had retreated to $71,450 by the time of reporting but was still up 4.3% on the day.
