The Bitcoin market experienced a significant boost following the announcement of a temporary ceasefire between the US and Iran. The agreement, announced by US President Donald Trump on Tuesday, led to a rapid increase in price, pushing Bitcoin above $72,000 for the first time since March 18.
The market reaction was swift, with a 2.55% increase in just one hour. This surge suggests that traders were eager to buy back into the market as soon as tensions eased. However, despite the price rebound, market observers noted that fear still lingered, with the Crypto Fear & Greed Index sitting at an 'Extreme Fear' reading of 11.
The temporary ceasefire has provided some relief to the market, but it remains unclear whether this will lead to a lasting settlement or merely a short-term reprieve. The fragile nature of the agreement means that the market is still vulnerable to volatility.