Key Points:
- Bitcoin reached a three-week high after a US-Iran ceasefire agreement.
- The ceasefire brought relief to markets, causing a surge in risk assets.
- Bitcoin ETFs saw significant net inflows, indicating easing selling pressure.
- Future market direction depends on oil recovery and inflation’s impact on interest rates.
Bitcoin hit a three-week high after the United States and Iran announced an initial ceasefire, leading to a surge in various investments considered riskier. The biggest cryptocurrency climbed as much as 4.9% to $72,738, its highest point since March 18. It later settled at $71,776 on Wednesday morning in New York. Smaller digital currencies also saw significant gains, with Ether rising by up to 7.4% to $2,273.
“Bitcoin jumped up this morning because of the temporary ceasefire and the relief that things wouldn’t get worse for now,” said Caroline Mauron, co-founder of Orbit Markets. “Crypto markets will likely follow what stocks and commodities do today.”
Crude oil prices dropped and stock markets rallied after President Donald Trump agreed to halt bombing on Iran for two weeks. This brought hopes that the important Strait of Hormuz could reopen. Markets have been unstable since the conflict started in late February, due to worries that major disruptions to oil supplies would cause inflation and slow down economic growth.
“I still expect markets to be up and down until we find a lasting solution,” said Ivan Lim, a senior derivatives trader at FalconX. “But overall, for now, the mood is positive.” Bitcoin has shown strength recently, with signs that big investors are selling less.
US-listed spot Bitcoin exchange-traded funds (ETFs) saw $471.3 million in new money come in on Monday. This followed $22.3 million last week, a big change from nearly $300 million that left the week before. March saw about $1.3 billion in new money for these ETFs, a steadying after four straight months of money leaving, which started in November 2025. Bitcoin is still down more than 40% from its record high of over $126,000 reached in October.
“A bull market could happen depending on how oil and gas supplies recover in the coming months and what that means for inflation,” said Jeff Mei, chief operating officer at BTSE. If inflation drops enough and the US Federal Reserve decides to cut interest rates again, “crypto prices could rally,” he added.
