Bitcoin Jumps 3.4% as Crypto Markets Rebound on Trump's Iran War Ending Claim

Cryptocurrency markets rebounded sharply on Friday after President Trump suggested the war between the United States and Iran had effectively come to an end. Bitcoin opened the day at $63,553, up 3.4% from Thursday's level, while Ethereum opened at $1,671.71, a gain of roughly 3.2%. The moves extended into the trading session, with bitcoin climbing further to around $63,718 and ether holding near $1,671 by mid-morning, as traders rotated back into risk assets across the board, a pattern that also lifted equities and even silver.

The rebound follows a brutal stretch for digital assets, with total crypto market capitalization having fallen roughly 48% from its peak amid weeks of escalating Iran-related tensions, inflation worries tied to oil prices, and reports of large scale Bitcoin selling by corporate holders. Spot Bitcoin ETFs had recorded extended streaks of net outflows during the downturn, with BlackRock's IBIT and Fidelity's FBTC absorbing the bulk of remaining inflows as smaller funds were increasingly left behind by institutional investors consolidating around the largest players.

Analysts cautioned that the rally should be viewed with some skepticism given how many previous claims of an imminent Iran peace deal have failed to materialize over the past month. Still, with Pakistan announcing that a final deal text has been reached and a signing ceremony potentially imminent in Geneva, traders said there is room for further gains in bitcoin and ether if the agreement holds, which could help both assets claw back some of their recent steep losses heading into the weekend.