Bitcoin jumped sharply past $71,000, climbing to an intraday high of $71,806, immediately after US President Donald Trump announced a pause in planned military strikes on Iranian power infrastructure.
Traders had been bracing for a potential escalation, and the announcement shifted sentiment almost instantly.
The news eased tensions in global markets and triggered a wave of buying across the crypto sector.
Other major cryptocurrencies, including Ethereum (ETH), Binance Coin (BNB), XRP, and Solana (SOL), followed Bitcoin’s lead, posting gains as the market sentiment changed.
Markets react to Trump’s announcement
The pause in US strikes is a relief after days of heightened uncertainty over the 48-hour ultimatum given by President Trump for Iran to open the Strait of Hormuz.
Earlier over the weekend, Bitcoin had dipped below $68,500 as concerns mounted about potential military action by the US military.
The sudden announcement from the White House reversed this trend and sparked a strong relief rally.
Within minutes, short positions totalling nearly $270 million were liquidated, amplifying the price move.
The sudden shift in sentiment also lifted other risk assets, including equities and precious metals like Gold and Silver, while the US dollar weakened slightly.
Bitcoin technical analysis
Bitcoin’s climb brings it close to the upper end of its two-month range of $62,571 to $74,691, demonstrating a strong recovery.
While the recovery from recent lows highlights the resilience of the market, even amid uncertainty, Bitcoin remains well below its all-time high of $126,080 reached in October 2025.
Bitcoin began the week with a notable CME gap around the $70,000 level, which has since been filled following the recent price rally.
Market participants are now turning their attention to the next gap near the $80,000 mark.
Derivatives data showed Bitcoin gradually absorbing sell orders below $72,000.
A sustained close above this level could pave the way for the BTC/USD pair to move toward $75,000, where a significant liquidity cluster is positioned.
On the downside, the $64,000–$65,000 range remains a key area to watch.
Analyst Daan Crypto Trades noted, “Currently there’s a lot of fear for the latter which is why most markets have been selling off a lot the past few trading days.”
Slowing inflows
Meanwhile, digital asset investment products recorded net inflows of $230 million for the week ended March 21, according to a CoinShares report released Monday.
This marked a sharp slowdown from the $635 million inflows seen in the first two days of the period.
The moderation in flows followed the Federal Open Market Committee’s meeting midweek, which markets interpreted as a “hawkish pause,” triggering $405 million in outflows during the latter part of the week.
What to expect over the coming days
For now, the pause in military action has given the market a much-needed boost.
However, the situation remains tense as Iran says there has been no direct contact with President Donald Trump.
If the conflict continues, then Bitcoin could easily slide back below $68,000 or even slide lower.
However, if the military strikes are paused for a week, as the president said, Bitcoin could gain more ground and even make an attempt at $74,000.
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