Bitcoin has successfully broken through the psychological level of $72,000, driven by geopolitical developments that have shocked the world.
At the time of writing, Bitcoin is currently at $71,669, up 0.05% since it opened early Wednesday in Asian trading.
Amidst the tense situation between the United States and Iran, the announcement of a two-week ceasefire was the main trigger for this sudden surge, thus reviving investor sentiment that had previously been clouded by uncertainty.
The decision to temporarily halt the attacks came from President Donald Trump, who expressed his willingness to postpone military action against Iran.
The move was later followed by the approval of Iran’s Supreme National Security Council.
While both sides agreed to ease tensions, Iran insisted that this was only a temporary truce and not an end to the ongoing conflict.
Within an hour of the announcement, Bitcoin’s price jumped by around 2.6%, hitting $72,339, its highest level in nearly three weeks.
Traditionally, geopolitical tensions have often been a factor in pressuring financial markets, including digital assets like Bitcoin.
Investors tend to take a cautious approach when global risks are rising.
However, any sign of easing tensions such as a ceasefire often triggers what is known as a ‘relief rally’, a price surge that occurs when market fears begin to subside.
However, despite this increase, overall crypto market sentiment has yet to fully recover.
The Crypto Fear & Greed Index is showing a reading of ‘Extreme Fear’, indicating that investors are still in a cautious mode.
