Bitcoin staged a modest recovery following earlier losses after U.S. President Donald Trump announced an extension of the pause on American attacks targeting Iran‘s energy infrastructure. The pause was extended to 10 days, offering markets a brief reprieve from geopolitical uncertainty. The announcement came after a broad market selloff on Thursday that weighed heavily on risk assets.
Prior to Trump’s remarks, Bitcoin had fallen more than 3% during Thursday’s trading session. The Nasdaq also declined, dropping 2.4% amid the broader market turbulence. The simultaneous drop across asset classes reflected investor concern over escalating tensions in the Middle East.
The ongoing conflict in the Middle East has had wide-ranging effects on global financial markets beyond just cryptocurrencies. Oil prices have risen sharply as a result of the hostilities, adding pressure to economies dependent on energy imports. At the same time, Western bond markets have experienced a growing selloff, compounding concerns among investors.
The combination of rising oil prices and bond market instability has created a challenging environment for traders across multiple asset classes. Bitcoin’s partial recovery following Trump’s statement suggests that markets remain sensitive to any signals of de-escalation. However, the broader uncertainty tied to the conflict continues to weigh on sentiment.
The situation remains fluid, with investors closely monitoring further developments regarding U.S. policy toward Iran and the wider regional conflict. The 10-day pause provides a limited window during which diplomatic or military dynamics could shift. Market participants are expected to remain cautious as the deadline approaches.
Originally reported by CoinDesk.
