Crypto assets extended gains after U.S. President Donald Trump announced a five-day pause on strikes against Iranian energy infrastructure, though traders caution the rally’s next phase will depend on how tensions between the two nations unfold.
Bitcoin held above $70,000 following an earlier breakout, with its short-term direction now closely tied to geopolitical headlines. Trump’s statement, which referenced “productive” discussions, helped buoy sentiment across digital assets and broader risk markets.
Although Iranian officials later dismissed the existence of any talks, markets largely looked past the contradiction, with crypto prices remaining stable through the session.
Bitcoin was trading just under $71,000, up roughly 3.8% over the past 24 hours. Altcoins outperformed, with ether, solana and dogecoin each gaining around 5%.
Crypto-linked stocks also moved higher, led by bitcoin miners that have increasingly tracked AI-related plays. Hut 8 surged more than 11%, while Bitfarms, Cipher Mining, CleanSpark, Riot Platforms and TeraWulf rose between 6% and 7%.
Traditional equities joined the advance, with the S&P 500 and Nasdaq both closing about 1.2% higher.
Despite the relief-driven move, traders remain cautious. Jasper de Maere, an OTC trader at Wintermute, said the macro backdrop has shifted, but the extent of further upside will depend on developments over the coming days.
If oil prices stabilize and shipping through the Strait of Hormuz normalizes, easing inflation concerns could revive expectations for interest rate cuts, providing a tailwind for crypto. In that scenario, bitcoin could make another attempt at the $74,000–$76,000 range, which has capped recent rallies.
However, if tensions escalate or energy supply disruptions re-emerge, oil could move higher again, reinforcing inflation risks and pushing markets back into risk-off mode—potentially dragging bitcoin toward the mid-$60,000s.
