The cryptocurrency market has rebounded on increasing optimism that conflicts with Iran may be coming to an end. With the recovery in global risk appetite, many major crypto assets, especially Ethereum and Solana, have gained value. The continued interest of institutional investors in crypto funds has also been a significant factor supporting the market recovery.
In the last 24 hours, the largest assets in the crypto market have moved upwards again. Ethereum rose approximately 3.2% to $2,068, settling back above the $2,000 mark, which has been considered a psychological threshold for weeks. Solana showed the strongest performance among major crypto assets, rising 3.9% to $87. BNB increased by 3.1% to $646, while XRP gained 4.6% to trade at $1.41. Bitcoin also reclaimed $70,000.
Trump's statements had an impact
The main development behind this market recovery came from the geopolitical front. US President Donald Trump's statement that the conflict with Iran "could end very soon" and that military objectives have been largely completed triggered a rapid recovery in risky assets. Following these statements, strong gains were seen in Asian stock markets. Asian markets, which had fallen 3.7% the previous day, gained approximately 2%, with MSCI Asia Pacific technology stocks rising 3.5%. The pullback in oil prices after a brief surge above $100 also softened risk perception in the markets.
Analysts believe the crypto market has largely priced in the negative developments of recent weeks. Analysts at on-chain data company Nansen state that the market is currently reacting more to headline news flow than to macroeconomic data. According to them, the crypto market has significantly absorbed recent geopolitical tensions, and short-term price movements are largely dependent on news flow.
Institutional investor inflows also support this view. According to CoinShares' weekly report, a total of $619 million inflows were made into digital asset investment products last week. Approximately $521 million of these inflows were directed towards Bitcoin-focused investment products. This brought the total assets under management for crypto funds to $108.3 billion. It is noteworthy that these strong fund inflows occurred despite volatility in global markets. In the same week, the S&P 500 index lost approximately $1 trillion in value in a single trading day, while the US economy saw a job loss of 92,000. Despite this, the continued capital inflow into spot Bitcoin ETFs suggests, according to some analysts, that institutional investors are viewing price dips as strategic buying opportunities. One of the most important developments that will determine the market's direction in the coming days will be the US Federal Reserve's meeting on March 17-18. Analysts warn that hawkish signals, particularly regarding interest rate policy, could put renewed pressure on risky assets. The recent rise in the 90-day correlation between Bitcoin and the S&P 500 to 0.78 also indicates that the crypto market continues to move in tandem with traditional financial markets.
