US-Iran Agreement, Bitcoin Rises! But Not Enough for a Rally! Analysts Explain What’s Needed for a Bull Run!
The US-Iran conflict, which has lasted for over a month, has finally reached a temporary conclusion.
Accordingly, the US and Iran announced a two-week ceasefire agreement during the night. This two-week agreement brought Brent crude down from $110 to $94, while other assets rose.
As profitability increased, gold, silver, and Bitcoin all rose together, with the BTC price climbing above $71,000.
In a statement following the ceasefire, Donald Trump said that Iran also wanted this agreement and that it was an important step for world peace.
While the agreement between the two countries has brought about the expected rise in Bitcoin, one analyst notes that this agreement is not enough to translate into a long-term bull run.
Not Enough for a Rise!
Speaking to The Block, LVRG analyst Nick Ruck said that a possible resolution to the US-Iran war has increased market sentiment but would not be enough for a long-term rise in Bitcoin.
“President Trump’s decision to pause attacks on Iran for two weeks eased geopolitical tensions. As oil prices fell, global risk appetite increased again. This led to a sharp relief rally in risky assets.”
However, the two-week truce doesn’t seem enough to turn the current rise in Bitcoin into a long-term bull market.
The analyst pointed out that renewed tensions between the two countries, the risk of the Fed not cutting interest rates, and rising inflation all indicate that more catalysts are needed for the rise to turn into a rally.
Similarly, Zeus analyst Dominick John stated that a truce alone is not enough for a sustained rise, and that more factors are needed.
At this point, John stated that the current rally was short-term and that sustained liquidity, interest rate cuts, and structural ETF inflows were needed to transform it into a sustainable bull market.
“The rise of Bitcoin and cryptocurrencies remains limited due to pressures on interest rates and potential geopolitical tensions triggering risk-aversion flows. Sustainable growth will depend on stable liquidity, stable macroeconomic conditions, and congruent structural capital inflows to fuel the next wave.”
*This is not investment advice.
