Bitcoin has surged back into bullish territory, reclaiming the $78,000 price zone as global risk sentiment improves following reports that the United States and Iran have agreed to extend their ceasefire arrangement.
President Trump yesterday disclosed to reporters that the extended cease-fire was because the Tehran government is seriously fractured. He further stated plans to keep the ceasefire in place until Iran comes to the table with a unified proposal to end the war.
This development has eased geopolitical tensions that recently weighed on financial markets, triggering renewed appetite for risk assets across the board.
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As uncertainty around conflict de-escalation grows more stable, investors are rotating back into digital assets, with Bitcoin once again leading the charge.
Crypto has reportedly started outperforming traditional assets, with Bitcoin running ahead of the S&P 500 and gold over the past month as investors seek alternative assets.
BTC traded as high as $78,452, climbing above its 11-week high. Ethereum and Solana led gains among crypto majors on Wednesday. ETH rose 2.7% in the last 24 hours to around $2,400. SOL rose 2.6% over the last 24 hours, crossing $88.
MN fund founder and chief investment officer Michael van de Poppe, says the momentum behind Bitcoin could lead to heavier breakouts for altcoins.
Bitcoin’s current rebound above $78,000, currently trading at $78,198 at the time of this report, reinforces confidence that the broader crypto market may be entering a fresh upward momentum phase after recent volatility.
LMAX Group strategist Joel Kruger says, Bitcoin’s recent recovery suggests it could be transitioning away from prolonged weakness seen since the third quarter of 2025.
According to the Crypto Fear & Greed Index, a classic lagging indicator that uses a basket of factors to reflect the mood among investors, conditions are at their least negative since mid-January.
Fear & Greed measured 32/100 on Wednesday still within its “fear” zone while like BSI also approaching the “neutral” bracket. The Index value has nearly tripled in a little over a week.
According to new research from Grayscale, it points that Bitcoin may be starting to shake off the worst part of the downturn that began in October last year. The firm points to Feb 5 when BTC traded around $63,000, as a durable market bottom.
In Grayscale’s view, the rebound since that low has been meaningful. The firm’s Head of Research, Zach Pandl, said the BTC price bottomed at roughly $63,000 and has since climbed more than 20%, reaching about $76,000.
That level, he noted, is slightly above the average cost basis for recent buyers, which matters because it can reduce the incentive to sell after a drop. In other words, if many holders are no longer underwater, selling pressure may ease at a time when buyers are trying to regain control.
Also, Crypto analyst, Zynx, in a post on X, revealed where the Bitcoin price might be headed over the next few years using the Bitcoin Power Law. This law shows a steady upward trajectory, putting into perspective the performance of Bitcoin over a long period of time.
Using this Power Law, the crypto analyst lays out the first prediction, and that is that the Bitcoin price will end up hitting $145,000 in 2026.
This would mean that the digital asset would complete an over 100% rally in order to hit this target, suggesting that there is another bull run coming this year.
The Bitcoin power law usually focuses on the long-term outlook of the cryptocurrency, often taking a more bullish route due to the length of time that it predicts over. Mostly, it uses historical performances to predict how high the Bitcoin price could go.
Over time, the Power Law has pointed to the Bitcoin price crossing $100,000, which it eventually did, and as the price has risen, so has the Power Law forecasts.
Outlook
Looking ahead, Bitcoin’s trajectory now hinges on whether macro stability and institutional inflows can sustain current momentum.
If geopolitical tensions continue to cool and ETF demand remains strong, BTC could consolidate above the $75,000–$78,000 range and build a base for a broader rally.
However, short-term volatility is still likely. Sentiment remains fragile as reflected in the Fear & Greed Index, and any renewed geopolitical escalation or liquidity tightening could trigger sharp pullbacks.
On the upside, sustained breaks above recent highs may open the door for a retest of higher resistance zones, with analysts increasingly watching the $85,000–$90,000 region as the next major psychological area.
Beyond that, the longer-term bullish structure remains intact, with many market participants still positioning for a multi-month expansion phase if current macro tailwinds persist.