Bitcoin Tops $68K Briefly as Risk Sentiment Improves on Iran War Report

Bitcoin rallies on easing tensions, but weak ETF inflows and extreme fear point to an uncertain recovery.

Crypto markets pushed higher as easing geopolitical tensions improved risk appetite among investors. Bitcoin briefly crossed $68,000, leading gains across major digital assets. However, underlying sentiment remains cautious, with weak institutional flows and persistent market fear limiting confidence in a sustained recovery.

Crypto Rallies as Trump Signals Possible End to Iran Conflict

A shift in geopolitical tone lifted risk assets across markets, including cryptocurrencies. Traders reacted to signs that tensions between the U.S. and Iran may be easing, prompting a renewed risk appetite.

As a result, crypto prices rose while uncertainty around energy supply stabilized. Bitcoin climbed as much as 2.6% to $68,335 before slipping below that level. At the time of writing, the asset traded near $66,610, reflecting partial profit-taking.

_Image Source: _CoinMarketCap

Meanwhile, Ethereum followed with a 3.3% intraday gain, while Solana and XRP rose slightly. Sentiment improved after a report from The Wall Street Journal stated that Donald Trump is considering ending U.S. military actions against Iran.

According to officials, such a move could proceed even if the Strait of Hormuz remains largely closed. In turn, that scenario suggests ongoing supply constraints but reduced immediate conflict risk.

Bitcoin Holds Firm, but ETF Inflows Signal Fragile Recovery

Throughout March, crypto markets have shown relative resilience. Bitcoin held steady despite declines in equities and gold, both pressured by inflation concerns tied to a possible energy shock.

Notably, gold has fallen more than 13% this month, while Bitcoin recorded modest gains over the same period. Even with recent stability, Bitcoin remains significantly below its prior peak.

However, overall sentiment remains cautious. The Crypto Fear & Greed Index sits at 26, a level that signals extreme fear among investors. This means many traders are still hesitant to take on risk despite recent price gains.

Institutional demand has shown a slight improvement at the start of the week. Data from Coinglass indicates that Bitcoin spot ETFs recorded a modest inflow of $69.44 million on Monday, following two consecutive days of outflows last week.

For Bitcoin’s recovery to hold, institutional demand needs to remain consistent and grow stronger over time. Without that, price gains may struggle to continue.