Bitcoin experienced a notable rebound on May 23, following comments from US President Donald Trump indicating that a peace memorandum with Iran had been “largely negotiated.” This development eased market anxieties that had escalated amid rising geopolitical tensions. Earlier in the day, Bitcoin had dipped below $75,000, reaching its lowest level in roughly a month, but quickly recovered to about $77,000, reflecting a 1.4% increase over a 24-hour period. Traders responded positively to hints that the US-Iran conflict could be moving toward a negotiated resolution.
During a series of conversations with global leaders, Trump mentioned discussions with representatives from Saudi Arabia, the UAE, Qatar, Pakistan, Türkiye, Egypt, Jordan, and Bahrain. He also held a separate call with Israeli Prime Minister Benjamin Netanyahu, underscoring the breadth of the negotiations.
The talks reportedly focused on a “Memorandum of Understanding pertaining to PEACE,” with Trump noting that the Strait of Hormuz would be reopened under the terms of the agreement. The Strait has been a significant point of concern for global markets due to its critical role in oil and energy distribution. A potential reopening of this passage could alleviate pressure on oil markets and contribute to a more positive overall risk sentiment within financial markets.
Bitcoin’s recovery followed a sharp intraday reversal and marked a key moment for the cryptocurrency, which had been under pressure alongside traditional assets due to geopolitical tensions. Interestingly, altcoins demonstrated even stronger gains than Bitcoin, indicating a potential shift among traders towards higher-risk assets as the headlines around the peace deal mitigated immediate fears.
Among the altcoins, AI-linked tokens were particularly resilient. NEAR Protocol posted a remarkable 14.8% rise over the 24-hour period and surged more than 62% over the week. Similarly, Worldcoin experienced an 8.7% increase on the day and a 26% gain over the past week. Privacy-related tokens also made significant strides, with Zcash climbing 8.8% in a single day and nearing a 28% increase for the week, solidifying its position as one of the stronger performers in the large-cap category.
Other notable altcoins included Ondo with an 8.5% rise, Morpho up by 7.8%, and Hyperliquid increasing by 6.3% during the same timeframe.
However, experts caution that the market’s optimism hinges on the successful transition from public negotiations to a finalized peace framework. Critical unresolved issues remain—these include the specifics surrounding sanctions relief, Iran’s nuclear ambitions, guarantees against renewed hostilities, and enforcement mechanisms pertaining to the Strait of Hormuz.
For the moment, traders appear to be interpreting Trump’s statement as a significant de-escalation signal. Bitcoin’s recovery from its recent one-month low, along with the bullish movement of altcoins, suggests a growing appetite for risk, at least in the short term.
