Global energy markets came to a standstill on March 23 after US President Donald Trump suddenly backed away from his 48-hour threat to destroy Iran’s power grid.
He said progress had been made in the secret talks and cited key points of agreement to end the three-week conflict. For this reason, Trump announced a five-day pause on any action against Iranian infrastructure, causing oil prices to drop from around $113 to almost $100.
However, the situation is still unclear. While the White House suggests a deal could be close, Iran has rejected the claims, calling them “fake news” and accusing the US of trying to influence oil prices.
So, as the five-day break begins, it is uncertain whether this is a real step toward peace or just a temporary respite from ongoing tensions.
Crypto market turns green
The crypto market reacted quickly to the news. Shortly after the announcement, the total market value of crypto was went up by about 3.4%, to about $2.43 trillion.
Bitcoin [BTC]which was previously close to a decline towards $ 65,000, bounced back strongly and climbed to about $70,800 at the time of writing. That’s roughly a 3.5% recovery from the recent low around $67,000.
Social volume of different tokens
However, price is only part of the story. Data from Santiment showed that Bitcoin social activity increased by 38%.
So is Ethereum [ETH] and Solana [SOL] saw the biggest spikes in social volume, most likely also due to the five-day break.
Bitcoin, on the other hand, is gaining more and more attention, showing that people still see it as a safer option in uncertain times. Meanwhile, Cardano [ADA] only receives attention during specific updates, not because of the larger global situation.
What awaits Bitcoin: a bull run or a massive collapse?
Bitcoin is up about 7% since the start of the West Asian crisis, strengthening its position as a potential alternative during uncertainty. If this trend continues, Bitcoin could see further upside potential as fear subsides.
However, experienced traders still remain cautious. This is because a similar pattern played out in early 2022 during the war between Russia and Ukraine, when Bitcoin rose by almost 40%, before falling sharply by around 67% as the broader economic impact unfolded.
That memory still influences sentiment today, keeping the market tense. Ergo, at this stage the market could be preparing for a sustained bull run, or heading for another temporary rally before a pullback.
Final summary
- The five-day pause in the war has provided short-term relief to markets, but uncertainty surrounding US-Iran tensions remains high.
- Despite rising prices, the “extreme fear” sentiment suggests investors lack confidence in a sustained rally.