U.S. President Donald Trump’s comments suggesting the war with Iran could soon end have increased optimism in the cryptocurrency market, while analysts have begun to assess the impact a possible ceasefire would have on Bitcoin prices.
Following recent contradictory messages from the White House, President Trump’s statement that “the war will be over soon” sparked a swift market reaction. As of today, Bitcoin is up to $68,594, and Ethereum and altcoins are also up.
According to market experts, we could see a short-term reversal in crypto assets once geopolitical tensions ease. SCRYPT CEO Norman Wooding said easing tensions could shift demand for safe assets to traditional risk assets. However, recent developments in the Middle East have highlighted increased volatility in both crypto and traditional markets.
Related news Breaking News: Drift Protocol Reportedly Suffered a $200 Million Hack – Massive Development
James Butterfill, head of research at CoinShares, argued that geopolitical developments have played a significant role in Bitcoin’s performance in recent months. According to Butterfill, while Bitcoin still has the characteristics of a “risk asset,” it has recently gained temporary recognition as a “safe-haven asset” by outperforming stocks.
However, analysts say a potential peace process could support re-entry into the crypto market in the short term. Nevertheless, the change in investor profile is noteworthy. Institutional investors, particularly pension funds and university endowments, reportedly take a long-term view of crypto assets and do not change their positions based on short-term geopolitical developments.
Meanwhile, experts say that oil prices remain an important variable for the direction of the crypto market. Rising energy prices after the outbreak of war caused the central bank to postpone interest rate cuts and limited market liquidity. However, if the conflict subsides and oil prices fall, it could ease inflationary pressures and pave the way for accommodative monetary policy, creating a supportive environment for Bitcoin.
*This is not investment advice.
