Cryptocurrencies rallied Thursday after President Donald Trump said he had called off planned U.S. military strikes on Iran, easing fears of a wider conflict and sending investors back into risk assets.

In a post on Truth Social, Trump said he had “canceled the scheduled strikes and bombings against Iran this evening,” adding that negotiations had reached the highest levels of Iran’s leadership and that a potential agreement could be finalized soon. Speaking from the Oval Office, Trump said a deal could potentially be signed over the weekend.

The announcement sparked a broad rally across digital assets.

Bitcoin climbed to an intraday high of approximately $63,850, while Ethereum approached $1,700. XRP and Dogecoin also posted strong gains as investors moved back into speculative assets. The total cryptocurrency market capitalization rose nearly 2%, reaching roughly $2.17 trillion.

The reaction followed a familiar market pattern. When geopolitical tensions ease, investors generally become more comfortable holding volatile assets, and cryptocurrencies often benefit disproportionately.

Trump’s comments came just one day after U.S. forces launched strikes against Iran following the loss of a U.S. Army helicopter near the Strait of Hormuz, a critical global energy corridor responsible for transporting a significant share of the world’s oil and natural gas supplies.

Although Trump signaled progress toward diplomacy, he also said the U.S. naval blockade of Iranian ports would remain in place until any agreement is formally completed, highlighting the fragile nature of the situation.

Markets remain cautious.

Iranian officials have not publicly confirmed that a final agreement has been reached, and at least one senior Iranian official reportedly stated that Tehran has not approved a framework.

Investor sentiment also remains weak despite Thursday’s rally. The Crypto Fear & Greed Index continued to register “Extreme Fear,” suggesting many traders remain skeptical about the sustainability of the move.

According to data from Coinglass, more than $260 million in crypto positions were liquidated during the previous 24 hours, with the majority consisting of short positions betting on lower prices. As those bets were forced to close, buying pressure accelerated the rally.

Meanwhile, Bitcoin open interest increased approximately 1.2%, indicating additional capital entering the market.

Another major event looming over financial markets is the highly anticipated SpaceX IPO.

The Elon Musk-led aerospace company priced what has been described as the largest stock sale in history this week, raising approximately $75 billion and preparing to begin trading Friday on the Nasdaq.

Such a massive offering could attract significant investor capital away from other speculative investments, including cryptocurrencies.

Widely followed market analyst Michaël van de Poppe warned that the timing could make conditions “tricky” for Bitcoin and other digital assets.

Van de Poppe said Bitcoin must hold a key support level near $63,200 to maintain upward momentum.

“However, if the trend stalls, we’ll probably hit the low of this correction in the weekend,” he said.

By Thursday afternoon, Bitcoin remained slightly above that threshold, but analysts said the coming days will determine whether the breakout can hold.

Additional signs of speculation emerged beneath the surface of the rally.

Research firm CryptoQuant reported rising activity in derivatives markets, particularly in Ethereum. Open interest in Ethereum futures on the Binance exchange reached a record high, reflecting increased use of leverage by traders seeking to capitalize on market volatility.

While leverage can amplify gains, it can also accelerate losses if sentiment reverses.

Thursday’s trading session highlighted how closely cryptocurrency markets have become tied to geopolitical developments and policy headlines.

A single social-media post from Trump helped move hundreds of billions of dollars across financial markets within hours. Analysts noted that just as quickly, those gains could reverse if negotiations break down.

The market now faces two competing forces.

A formal Iran agreement could remove one of the largest sources of uncertainty confronting investors and support continued buying of risk assets. At the same time, a successful SpaceX market debut could attract investor attention and capital away from cryptocurrencies.

For now, Bitcoin remains above the critical level analysts are watching, and traders will be closely monitoring both the Iran negotiations and Friday’s historic SpaceX debut to determine whether the rally has staying power.

JBizNews Desk — Markets

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