Global energy markets paused on March 23 after US President Donald Trump abruptly backed down from his 48-hour threat to destroy Iran’s power grid.
He said there had been progress in secret talks and mentioned major points of agreement towards ending the three-week conflict. Therefore, Trump announced a five-day pause on any action against Iran’s infrastructure, which caused oil prices to fall from $113 to $100.
However, the situation still remains unclear. While the White House suggested that a deal could be close, Iran rejected these claims, calling them “fake news” and accusing the United States of trying to influence oil prices.
So, as the five-day recess begins, it is unclear whether this is a real step towards peace or a temporary respite in ongoing tensions.
Crypto market turns green
The crypto market reacted quickly to this news. Total market cap of crypto shortly after the announcement went up It increased by approximately 3.4%, reaching approximately $2.43 trillion.
Bitcoin (BTC), which was previously close to falling to $65,000, has rebounded strongly and climbed Up to around $70,800 at press time. This represents a roughly 3.5% recovery from recent lows around $67,000.
Social volume of different tokens
But price is only part of the story. Data from Santiment showed that Bitcoin’s social activity increased by 38%.
Likewise, Ethereum (ETH) And Solana (Sun) saw the largest increases in social volume, likely as a result of the five-day pause.
BitcoinOn the other hand, it is seeing more consistent interest, which suggests that people still see it as a safer option in uncertain times. Meanwhile, Cardano (ADA) It only gets attention during certain updates and not because of the larger global situation.
What awaits Bitcoin: Bull run or a big decline?
you have bitcoin acquired It has risen nearly 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 gains as fear subsides.
However, experienced investors still remain cautious. This is because a similar model was played In early 2022, during the Russia-Ukraine war, Bitcoin rose by about 40% and fell sharply by about 67% as the broader economic impact emerged.
This memory still influences sentiment today and keeps the market on edge. So at this stage the market may be either preparing for a sustained bull run or heading for another temporary rally before pulling back.
Final Summary
- The five-day pause in the war provided short-term relief to markets, but uncertainty regarding US-Iran tensions remains high.
- The feeling of “extreme fear” despite rising prices shows that investors do not have confidence in a sustainable rise.
