The cryptocurrency market opened the week on a positive note, supported by easing geopolitical tensions after Donald Trump announced a temporary halt to planned US military strikes on Iran’s energy infrastructure. The move has improved investor confidence, lifting major digital assets and the broader market.
Total crypto market capitalization rose by roughly 3% to $2.53 trillion, reflecting renewed optimism among traders. Bitcoin climbed back above the $70,000 level after dipping below $68,000, while Ethereum traded above $2,100. XRP also regained strength, holding above the $1.40 support zone.
US pauses Iran strikes amid ongoing negotiations
The US administration signaled a shift in approach to the Middle East conflict, now entering its fourth week, by suspending planned attacks on Iran’s power and energy facilities. The decision follows ongoing diplomatic discussions aimed at reducing hostilities in the region.
Prior to the announcement, tensions had escalated, with threats of military action tied to disruptions around the Strait of Hormuz. Iran had warned it would retaliate by targeting key energy infrastructure across the Gulf if strikes proceeded.
Although the pause has reduced immediate risk, uncertainty remains. Oil prices continue to hover at elevated levels, trading around $89 after recently nearing $100 per barrel. According to the International Monetary Fund, sustained high energy costs could push inflation higher and slow global economic growth, particularly for countries heavily dependant on oil imports.
Bitcoin holds key level above $70,000
Bitcoin’s recovery above the $70,000 mark is being closely watched by market participants. The level is seen as a crucial psychological and technical threshold that could influence short-term price direction.
Maintaining momentum above this range may strengthen bullish sentiment and open the path toward a potential move to $80,000. However, failure to sustain this level could trigger renewed selling pressure, possibly pushing prices back toward the low $60,000 region.
Weak sentiment persists despite market recovery
Despite the rebound in prices, overall market sentiment remains fragile. The widely followed Fear & Greed Index continues to signal “extreme fear,” indicating that investors remain cautious.
Capital inflows into digital asset investment products have also slowed. According to data from CoinShares, inflows totaled $230 million last week, significantly lower than previous periods. This slowdown follows approximately $405 million in outflows linked to the US Federal Reserve’s decision to maintain interest rates and signal a cautious stance on future monetary easing.
Token unlocks could introduce volatility
Adding to market uncertainty, nearly $100 million worth of token unlocks is scheduled for release this week. Toncoin leads the events with a $48 million unlock, representing over 10% of its market capitalization.
Other notable unlocks include River with around $26 million, Walrus Protocol with $29 million, and Jupiter with approximately $8 million.
These scheduled releases can act as supply shocks, often triggering price swings as investors adjust positions ahead of increased circulating supply.
Overall, while easing geopolitical tensions have provided short-term relief, cautious sentiment and upcoming token events suggest that volatility may persist in the near term.
