Bitcoin, gold and silver soared after US President Donald Trump announced the suspension of his Project Freedom initiative.
Gold rose 2.7% and silver rose 4.5%, adding nearly $1.05 trillion to their combined market value in just nine hours, according to market data shared by analyst Bull Theory. At the same time, Bitcoin soared, returning to its highest price in months.
Crude oil falls across the board
Meanwhile, energy markets moved in the opposite direction. Oil prices fell following the announcement, with Brent crude oil falling 1.81% to $107.88 per barrel and West Texas Intermediate (WTI) falling 1.72% to $100.51 per barrel.
The decline extended beyond crude oil, with natural gas falling by 0.67%, gasoline by 0.93%, and kerosene by 1.28%. The decline reflects concerns about potential supply disruptions eased as the suspension of Project Freedom signaled a reduction in immediate geopolitical risks around the Strait of Hormuz.
Reasons why “Project Freedom” was suspended
President Trump said the decision followed progress toward a potential deal with Iran and requests from Pakistan and other countries. He noted that while the U.S. blockade of Iranian ports remains in place, the moratorium would give time to finalize negotiations.
The situation remains controversial. Journalist Jeremy Scahill dismissed Trump’s claims, saying the operation had failed and citing Iranian officials who refused immediate negotiations unless the blockade was lifted.
Project Freedom involved significant military support from U.S. Central Command, including naval assets, aircraft, and thousands of personnel. Iranian officials warned early on that any interference in the region would violate the existing ceasefire.
Bitcoin rises as institutional demand increases
While traditional markets reacted to geopolitical developments, Bitcoin continued its upward trajectory. The asset rose 1.73% in 24 hours to $82,300 at the time of writing, returning to the $82,000 level for the first time since January.
The move confirms a recent departure from consolidation supported by strong momentum. The 7-day RSI stands at 76.09, indicating a bullish situation. Meanwhile, market sentiment has improved, with the Fear & Greed Index moving from Fear to Neutral.
Institutional demands also play an important role. The US Spot Bitcoin ETF recorded net inflows of $467.35 million on May 5, led by BlackRock’s IBIT fund. This is the fourth consecutive day of positive flow.
The latest developments highlight clear differences between asset classes. Precious metals are benefiting from new geopolitical caution, energy markets are pulling back as supply concerns ease, and Bitcoin is gaining momentum with sustained inflows from institutional investors. Traders are approaching the market with caution as negotiations over Iran remain uncertain.
Related: BlackRock’s European Bitcoin ETP IB1T has total assets under management of over $1.1 billion and holds 14,200 BTC
