Bitcoin returned to levels above the previous all‑time high after the breakthrough decision of Donald Trump.
Bitcoin tries to play green
Donald Trump again gave investors a lot of emotion. The Republican announced that the United States and Israel suspended attacks on Iran for two weeks.
Meanwhile Iran was to agree to unblock the Strait of Hormuz during that period. Everything therefore looks as if peace will again prevail in the Middle East.
In response, Bitcoin returned to levels north of 70,000 USD. On Wednesday, both U.S. stocks and the Warsaw Stock Exchange were also expensive.
But this is a natural reaction to a ceasefire.
The markets have been unstable since the start of the war, and investors feared that serious disruptions in oil flows would increase inflation and negatively affect economic growth.
Bitcoin itself has been trading between 60,000 and 75,000 USD since February 28, the day of the first U.S. attacks on Iran. It has actually positively surprised by not falling below that first level, and over the last month it has performed even better than gold.
A ceasefire could now help a new bull offensive. Adam Saville‑Brown, head of trading at Tesseract Group, believes that breaking through 73,500 USD could help return to 80,000 USD. Conversely, renewed military action would bring declines.
“If the ceasefire does not hold, we will likely drop to 66,000 USD,” warns Matt Mena, crypto research strategist at 21shares.
For now, however, bears are getting a taste of their own medicine: according to CoinGlass data, over the last day more than 250 million USD was liquidated in short positions.
Spot market activity remains weak: Glassnode, a blockchain analytics firm, warns that “as long as spot market demand does not rise, gains will likely be fragile and lack lasting continuation.”
What about the ETF market? Bitcoin‑based funds recorded a net inflow of 471.3 million USD on Monday. However, over the last two days—April 7 and 9—sales dominated this area (total -283.6 million USD).
“So far it looks more like early stabilization than a full return of institutional demand,” notes Glassnode, describing the ETF market situation.
We therefore receive quite mixed signals. On one hand, spot market shows gains; on the other, ETFs sell again. The market likely awaits a final resolution of the Middle East situation.
But it’s not just about war. Even if it ends, investors will wait for further Fed decisions.
If the central bank does not return to rate cuts, it will be futile to wait for a rally.
See also: Bitcoin price before a big crash? This scenario “will put pressure on the decline of crypto asset values,” says the expert.
Bitcoin price between heaven and hell
The Bitcoin price is today at 71,000 USD, the same as yesterday and simultaneously a 7‑day gain of 4.2%.
Over the last month the main cryptocurrency gained 8.5% in value.
Chart. Bitcoin price (BTC/USD)
Source: Trading Economics
Ether fell below 2,200 USD and investors now pay about 2,180 USD, a drop of 0.3% from yesterday and a 2‑percent gain over 7 days.
Over the month, Ethereum gained up to 9% in value.
Chart. Ethereum price (ETH/USD)
Source: Trading Economics
Read also: Bitcoin price awaiting a crash of about 25,000 USD? Expert: “Bitcoin could dive even near 45,000 USD.” What next for ETH?
See also: Bitcoin price (BTC/USD, BTC/PLN) before a rally? The breakthrough is here, no hope.
