Crypto Market Rebounds as Iran Reportedly Reaches Out To U.S. To End Conflict
The crypto market has rebounded today, with Bitcoin rallying above $71,000 for the first time since the start of last month. This comes as tensions between the U.S. and Iran ease, with reports that Iran had reached out to the U.S. to end the ongoing conflict.
Crypto Market Rises Over 3% as Iran Seeks to End War
TradingView data shows that the total crypto market cap is up over 3% today, rising to $2.40 trillion. Bitcoin has led the rally, rising to an intraday high of almost $72,000, its highest level since the start of last month.
This follows a New York Times report that Iran had reached out to the U.S. to discuss ending the war. Iran reportedly made this offer to the Central Intelligence Agency (CIA) through its spy agency. U.S. President Donald Trump had notably mentioned earlier this week that Iran had reached out to negotiate, although he said it was too late.
CoinGlass data shows that short positions have suffered the most liquidations amid today’s crypto market rebound. In the last 12 hours, $221 million has been liquidated from the market, with $177 million being short positions.
The BTC price had notably bounced to around $68,000 yesterday, even as the broader global markets declined, with stocks and gold tumbling. This came as spot investors bought the dip in hopes that the U.S.-Iran war would not last long.
Institutional investors are also buying the dip, which is also a positive for the crypto market. SoSoValue data show that Bitcoin ETFs recorded daily net inflows of $225 million yesterday and have now recorded net inflows in five of the last six trading days.
VanEck CEO Jan van Eck stated that Bitcoin is near a bottom, predicting a gradual recovery for the leading crypto. He noted that BTC’s decline since the end of last year has nothing to do with fundamentals but is simply based on the four-year halving cycle.
Selling Pressure Is Fading
On-chain analytics platform CryptoQuant noted that although global instability and the bear market are expected to persist, the low volume of deposits into exchanges validates the exhaustion of selling pressure in Bitcoin. However, the platform also warned that there is no clear accumulation zone yet, suggesting the leading crypto could still see another downtrend.
However, a positive for the BTC price and the broader crypto market is that the current data shows that the opportunity is approaching, with a bottom likely to form soon before the cycle reversal, according to CryptoQuant. It is also worth noting that the dollar is falling, which could provide a short-term boost to crypto prices.
Market commentator Ran Neuner declared that Bitcoin’s big moment is here. This came as he noted that BTC is now the best-performing trillion-dollar asset since the U.S.-Iran war began. “That is not a coincidence,” he said.
