Bitcoin experienced a slight recovery Thursday afternoon, trading at approximately $70,046.42, after a significant selloff earlier in the day. The cryptocurrency market gained momentum following remarks from former U.S. President Donald Trump, who announced an extension of a pause on attacks against Iranian energy infrastructure. In a post on his social media platform, Truth Social, Trump indicated that the pause would last for an additional ten days, attributing the decision to ongoing diplomatic discussions. He stated, “As per Iranian Government request… I am pausing the period of Energy Plant destruction by 10 Days,” adding that the negotiations are progressing positively.
This announcement brought a measure of stability to the markets, which had experienced turbulence on Thursday. Early in the day, Bitcoin saw a significant decline of 3%, while the tech-heavy Nasdaq composite index dropped by 2.4%, marking a near 10% decrease from its peak earlier in the year.
The backdrop of heightened geopolitical tensions has significantly impacted commodity prices, particularly oil, which has surged since the onset of hostilities. However, a growing concern lies in the bond markets, where the selloff is becoming increasingly pronounced. The yield on the U.S. 10-year Treasury skyrocketed from below 4% just weeks ago to a peak of 4.43% on Thursday before settling back to 4.41%. This spike is accompanied by shifting expectations regarding Federal Reserve interest rate cuts, with many analysts now predicting a possible rate hike instead.
Similar trends in bond yields and monetary policy expectations are being observed across Western Europe, contributing to a broader atmosphere of uncertainty in the financial markets.
Despite the earlier downturn, Trump’s comments provided a boost for Bitcoin, which rose approximately 1% from its lowest levels of the day. The cryptocurrency is presently trading just above $69,000. Other cryptocurrencies, including Ether, XRP, Solana, and Cardano, saw mild rebounds from session lows but remained down between 3% and 5% over the prior 24 hours, reflecting the overall volatility in the market.
