Bitcoin, stocks soar as markets respond to chance of US and Israel-Iran war ending
Why it matters: The DOW gained over 1,125 points, and Bitcoin briefly hit $68,589, impacting millions of investors.
- Bitcoin (BTC) briefly jumped to $68,589, while the DOW gained over 1,125 points, the S&P 500 rose 2.91%, and the Nasdaq increased 3.83%.
- US President Donald Trump is reportedly considering options to end the war, as per The Wall Street Journal, though no official statement has been made.
- Iranian President Masoud Pezeshkian is also rumored to be seeking an exit from the conflict, contingent on certain assurances from the US and Israel.
- Crypto traders are skeptical of Bitcoin's rally, with Cointelegraph noting that a daily close above $68,879 and the 50-day moving average is crucial for a sustained trend change.
- Bitcoin futures open interest and spot demand have remained flat since the February 6 sell-off, indicating that current price action is largely driven by news and equities, not strong directional bets.
- Short-term traders hold positions below their cost basis ($85,800), and stablecoin inflows to crypto exchanges are near a two-year low, reflecting extreme caution among investors.
Global markets, including Bitcoin and US stocks, surged on speculation that the US and Israel-Iran war might be nearing an end, with both President Trump and Iranian President Pezeshkian reportedly exploring de-escalation options. Despite the rally, crypto traders remain skeptical, with Cointelegraph reporting a lack of sustained spot demand and bearish sentiment in futures markets, suggesting the gains are primarily news-driven.
