Key Points:
- Bitcoin reaches an 11-week high, topping $78,400.
- Trump’s extended ceasefire with Iran boosts market confidence.
- Bitcoin outperforms traditional safe-haven gold during recent tensions.
- Inflows return to U.S.-listed spot Bitcoin ETFs.
Bitcoin surged on Wednesday, hitting an 11-week high as President Donald Trump announced an extension of the ceasefire with Iran. This news boosted confidence across financial markets, including cryptocurrencies and stocks.
The original cryptocurrency climbed as much as 3.6%, briefly pushing its price over $78,400. This marks its highest value since February 3rd. Bitcoin was trading around $78,000 at 6:40 a.m. in London. Other cryptocurrencies also saw gains, with Ether increasing by up to 3.8%.
Paul Howard, a senior director at Wincent, a market maker, noted that “Bitcoin’s short-term direction heavily depends on what happens in the wider economy and global politics.” He added that without a clear external push, traders focusing on steady conditions would likely see $72,000 as a strong support level, with gains limited by potential resistance and profit-taking around $79,000.
Stock futures for the S&P 500 Index also rose by over 0.5%. In contrast, Brent crude oil dropped 1.8% to below $97 a barrel, showing a mixed reaction across different asset classes.
Bitcoin has shown resilience during the conflict with Iran, performing better than many other assets, even traditional safe havens like gold. Gold has dropped roughly 10% since February 27th, while Bitcoin has risen more than 15% in the same period.
Caroline Mauron, co-founder of Orbit Markets, commented, “Crypto has been feeling positive in recent weeks, often ignoring bad news and rising on good news.” She believes the $75,000 level should act as strong support, and a clear break above $80,000 would open the door for much bigger gains.
Since the war began in late February, Bitcoin has mainly traded between $65,000 and $75,000. This period of stability offered a break from months of declines that saw the token lose about 40% of its value from its October high of $126,000, when a sharp selloff hit crypto markets hard.
Recently, money has started flowing back into U.S.-listed spot Bitcoin exchange-traded funds (ETFs). The 13 funds have already seen over $250 million in net inflows this week, after investors poured $996.4 million into them last week.
