Trump's Ceasefire Extension Effect...Bitcoin, Poised to Conquer the $80,000 Mark

▲ Trump, Bitcoin

U.S. President Donald Trump announced an extension of the ceasefire with Iran. Simultaneously, Bitcoin (BTC) is experiencing a powerful rally, nearing the $80,000 mark.

According to a report by cryptocurrency media outlet BeInCrypto on April 22 (local time), Bitcoin surpassed $79,000 on Wednesday, reaching its highest level since February 3. President Donald Trump abruptly announced a two-week ceasefire extension on Tuesday, citing divisions within the Iranian government in Tehran. President Trump added that the Iranian government needed time to present a unified proposal. This announcement eased geopolitical fears that had suppressed the market, restoring investor sentiment towards risk assets.

The U.S. stock market also showed a synchronized upward trend with Bitcoin. The Nasdaq index rose more than 1% during the session, adding warmth to the overall market. Bitcoin had fallen below $74,000 on April 19 following news of Iran's rejection of peace talks but rebounded more than 7% after the ceasefire extension announcement. President Trump hinted that negotiations could resume as early as this Friday through Pakistani mediation.

The upward trend in the virtual asset market was driven not only by geopolitical factors but also by changes in the macroeconomic environment. As central banks worldwide increased their gold reserves to an all-time high of 38,666 tons, the preference for safe-haven assets is also transferring to Bitcoin. This volume, approximately 17% of all gold ever mined, is an indicator of capital movement into physical assets. China's silver imports also surged by 78% month-over-month, demonstrating an explosion in demand for alternative assets from individual investors.

On the other hand, risks within the market still exist. Iran's Islamic Revolutionary Guard Corps issued a warning that it could cut undersea internet cables and cloud infrastructure in the Persian Gulf. Such threats are variables that could immediately impact the market if tensions resume. Additionally, the rapid growth in U.S. margin debt, similar to the meme stock frenzy of 2021, is raising alarms about market overheating.

Whether Bitcoin settles at the $80,000 level depends on Iran's change in stance and the pace of negotiations. Whether Iran presents a unified proposal within the deadline set by President Trump is expected to determine the short-term price direction. The virtual asset market is closely watching the Trump administration's diplomatic achievements, aiming for Bitcoin's historic price breakthrough.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*