A crypto bull run could be on the horizon after President Donald Trump hinted that the ongoing Iran war will end soon, and as the Fear and Greed Index continues rising.
Summary
- Bitcoin and most altcoins jumped on Wednesday.
- Donald Trump hinted that the Iran war will end soon.
- The Crypto Fear and Greed Index is about to exit the fear zone.
Bitcoin (BTC) price rose to $71,000, while Ethereum was stuck above $2,000. The market capitalization of all coins jumped to $2.41 trillion.
The main reason for the potential crypto bull run is a statement from Trump, who noted that the Iran war will likely end soon, with officials predicting two more weeks of fighting. This means that it may end at the end of this month.
He noted that the war will end as there will be nothing more left to attack. As a result, ending of this war will be bullish for Bitcoin and other altcoins because it will remove one of the main risks in the market. It will also lower the ongoing inflation concerns, which explains why crude oil prices have dropped sharply from the weekly high.
Still, the main risk is whether Iran will stop the war. Analysts believe that it is in its interest to continue fighting for longer to prevent future attacks from the US and Iran. Indeed, Iranian officials noted that they would switch to continuous attacks with the goal of pushing oil prices to $200 a barrel.
The other potential catalyst for a crypto bull run is the Fear and Greed Index has risen gradually. It has jumped from the year-to-date low of 10 to 27. If the trend continues, it will likely move to the neutral zone followed by the green area.
Historically, crypto bull runs normally start whenever the index is rising. Prices then start their bear markets whenever they move to the extreme greed zone. This view mirrors the popular quote by Warren Buffett, where he recommends buying when others are fearful and selling when others are greedy.
