Key facts
- Bitcoin surged above $63,000 amid signs of de-escalation in US-Iran tensions.
- President Trump announced the postponement of planned strikes on Iran.
- Global markets, including stocks and cryptocurrencies, rallied on the news.
- Oil prices fell as geopolitical risk premium decreased.
Bitcoin surged above $63,000, recovering from a week of risk-off selling, as President Donald Trump announced the postponement of planned strikes on Iran and signaled an imminent deal. This perceived de-escalation spurred a rally across global markets, with oil prices falling and stock indexes posting significant gains.
Bitcoin traded at $63,550 on Friday, up 1.6% on the day and 1.4% over the week, recovering from earlier lows below $60,000. The market interpreted Trump's statement about ending the war with Iran as a significant development that has influenced prices for over 100 days.
In response to the geopolitical shift, Brent crude dropped 2% to approximately $88.50 a barrel. The positive sentiment extended to equities, with South Korea's Kospi rising 7.6% and MSCI's Asia Pacific index gaining 3.5%, its largest increase in two months. U.S. stock futures indicated a higher open, and European shares were expected to rise by 1.8%.
The easing of Middle East tensions reduces pressure on oil prices, which in turn could alleviate inflationary concerns that have fueled expectations of higher interest rates. This shift in rate expectations has previously contributed to declines in cryptocurrencies and gold.
The cryptocurrency market saw broad gains, with Ether up 1.3% to $1,673, BNB up 1.5% to $602, and Solana up 3.0% to $67. Hyperliquid's HYPE token led gains with a 7.6% increase, while TRON declined 2.0%.