Bitcoin (BTC) rose above $78,000 on Friday as a new peace proposal from Iran eased geopolitical tensions, causing a sharp drop in oil prices and boosting risk assets.
The leading cryptocurrency rallied over 3% from an intraday low of around $76,000 to trade at $78,800, according to TradingView data. The move marks a recovery for Bitcoin, which had struggled to overcome the same resistance level earlier in the week. The rally was mirrored in traditional markets, with the S&P 500 reaching a new all-time high.
The primary driver for the renewed optimism was a report from Axios stating that Iran had submitted a new proposal through Pakistani mediators to end the conflict with the U.S. This development cooled fears of a wider conflict, sending Brent crude oil futures down over 4% to approximately $106 per barrel. The drop in oil alleviates pressure on inflation, a key factor watched by crypto and equity investors alike.
“The easing of geopolitical tensions is creating a 'risk-on' environment, boosting both cryptocurrency and traditional stock markets,” said a market analyst. “If the diplomatic progress continues, it could sustain the rally and encourage further investment into growth assets.”
The bullish momentum comes despite a recent cooling in institutional demand. US-listed spot Bitcoin ETFs recorded net outflows of $490 million between Monday and Wednesday, according to SoSoValue data. However, zooming out, these funds have still attracted a net $3.3 billion in inflows since March, showing a broader trend of adoption.
Even with the recent outflows, some large buyers remain active. Michael Saylor's Strategy announced the acquisition of 56,235 BTC in the first four weeks of April, bringing its average cost to $75,537 per coin.
For Bitcoin, the next key resistance level is seen at the psychological $80,000 mark. The path to this level will likely depend on continued de-escalation in the Middle East and the trajectory of inflation, with the latest US GDP figures showing slightly slower-than-expected growth at a 2% annualized rate.
This article is for informational purposes only and does not constitute investment advice.
