The risk-off sentiment that impacted crypto throughout the week is now shifting. Bitcoin has returned to positive territory, with the catalyst being an unexpected easing of tensions in the Iran conflict. Bitcoin traded at $63,550 on Friday, reflecting an increase of 1.6% for the day and 1.4% for the week, according to CoinDesk data. Days earlier, it had declined to levels not observed since 2024 – dipping below $60,000 – but has since rebounded, resulting in a weekly gain. A significant catalyst emerged when President Donald Trump announced that the US was nearing a deal with Iran, declaring that he had “ended the war with Iran today.”
Markets interpreted it as the conclusion of a conflict that has caused significant price fluctuations for over 100 days. Brent crude experienced a decline of 2%, settling at approximately $88.50 per barrel, whereas gold and silver prices saw a notable increase. The shift extended to equities. South Korea’s Kospi, a benchmark for AI stocks, increased by 8.4%. MSCI’s Asia Pacific index experienced a notable increase of 3.5%, marking its most significant rise in the past two months. US stock futures indicated a positive trajectory, while European shares were poised for an opening increase of 1.8%.
A more stable Middle East alleviates pressure on oil prices, which in turn mitigates inflationary concerns that have fuelled expectations of rising interest rates – the same apprehension regarding rates that contributed to the decline of crypto and gold this week. The rebound was widespread. Ether increased by 1.3% to $1,673, BNB saw a rise of 1.5% to $602, and Solana experienced a gain of 3.0% to $67. Both XRP and Dogecoin each rose by more than 2%. Hyperliquid’s HYPE outperformed the major players, rising by 7.6% today; however, it continues to be the underperformer for the week. TRON experienced a decline, decreasing by 2.0%. Focus is now directed towards SpaceX.
The company is set to debut on Nasdaq this Friday following a remarkable capital raise of $75 billion, marking the largest initial public offering in history. Pre-listing markets are indicating a debut increase of at least 35%. Bitcoin has experienced a 1.4% increase over the last week, marking a significant reversal from a period that began with it reaching bear-market lows. Whether the bounce holds now hinges on the Iran deal being finalised, which Trump indicated could occur this weekend in Europe.