Trump’s truce sends crypto into a frenzy – ether surges, bitcoin rebounds
A hastily brokered ceasefire between the United States and Iran has injected a volatile dose of optimism into the cryptocurrency market, triggering a dramatic surge in Bitcoin and smaller altcoins.
Bitcoin climbs to $71,300 after initial de-escalation
Following an initial announcement by President Trump suspending military action for two weeks – a move intended to potentially reopen the crucial Strait of Hormuz – Bitcoin experienced a significant rally. The dominant cryptocurrency leaped by 4.9%, hitting a three-week high of $72,738 before moderating slightly to trade at $71,300 by mid-day in Singapore. Ether followed suit, gaining a robust 7.4% and breaching $2,273, highlighting the broader market response to the geopolitical shift.
Market sentiment driven by risk appetite
“Bitcoin saw a notable uptick this morning following the temporary truce and the relief that, for now, further escalation has been averted,” commented Caroline Mauron, co-founder of Orbit Markets. “Crypto markets will likely be guided today by the performance of equities and commodities – a clear reflection of the diminished risk premium.” The temporary reprieve, fueled by reduced geopolitical uncertainty, has undeniably shifted market sentiment towards a more risk-inclined posture. However, the volatility remains stubbornly persistent, as Ivan Lim, a senior derivatives trader at FalconX, cautioned, predicting continued market instability until a definitive resolution emerges.
Etf inflows signal institutional re-engagement
Despite a considerable pullback over the past year, Bitcoin’s recent performance suggests a potential waning of institutional selling pressure. Net inflows into Bitcoin spot ETFs in the US surged to a remarkable $471.3 million on Monday, building on the $22.3 million accumulated the previous week. This represents a stark contrast to the nearly $300 million outflows experienced the week prior – a clear reversal of trends. March witnessed a substantial influx of approximately $1.3 billion into Bitcoin ETFs, effectively stabilizing the market after four consecutive months of net withdrawals initiated in November 2025. The data speaks volumes about a potential shift in investor confidence.
Inflation and fed policy remain key drivers
Bitcoin’s recovery hinges on several factors, most notably the trajectory of inflation and the subsequent response from the Federal Reserve. Jeff Mei, BTSE’s Director of Operations, stated: “The possibility of a bullish market depends on how the supply of oil and gas recovers in the coming months and its impact on inflation.” A successful moderation of inflationary pressures coupled with a resumption of interest rate cuts by the Fed could trigger a renewed rally in cryptocurrency prices. Crucially, the market will be observing the Fed’s next move with intense scrutiny.