How Bitcoin and Global Markets Reacted to Trump's Iran Settlement

Notably, both U.S. officials and Iran confirmed the settlement was not a final resolution. Iran’s foreign ministry had stated days earlier that a “deal with the US is not imminent,” and outlets including the BBC, AP, and Axios characterized the agreement as a “first-step framework” that defers existential questions . The permanent fate of Iran’s enriched uranium stockpiles, its ballistic missile program, the full lifting of sanctions, and the path to a formal peace treaty all remain unresolved .

Crypto and equities: A sharp but cautious bounce

Markets reacted instantly and violently to the announcement—but the rally was more a burst of relief than a surge of conviction.

Bitcoin traded around $63,653 early on June 12, up 3.3% on the day . The broader cryptocurrency market followed: Solana led with a +5.7% gain to $66.89, XRP added 4.0%, and Ether rose 3.0% . Global stock markets also surged after Trump confirmed he had called off planned military strikes, with equities posting broad-based gains .

The price action marked a dramatic pivot from the preceding weeks. Just a day earlier, on June 11, major cryptocurrencies were flat or dipping as the U.S. military struck “multiple targets” inside Iran, and the Crypto Fear & Greed Index reflected deep pessimism .

The bloodbath before the bounce

To grasp why the June 12 rally felt so fragile, you have to look at what the market endured in May and early June.

Liquidations. During the height of Iran tensions, leveraged crypto positions were obliterated in cascading selloffs. More than $400 million was liquidated in a single day in late May . At the worst moments, liquidation volumes hit nearly $1 billion in 24 hours, with the vast majority coming from overleveraged long positions betting on a recovery that didn’t come .

ETF outflows. Institutional money fled. Crypto investment products recorded $1.47 billion in outflows in a single week during peak risk-off sentiment . Over nine consecutive trading sessions, Bitcoin ETFs saw outflows total $2.85 billion . Across a two-week stretch in late May, those outflows crossed $2.5 billion .

Extreme Fear. The Crypto Fear & Greed Index sat at 12 in the days just before Trump’s June 12 announcement, well below the "Extreme Fear" threshold of 25 and hovering near levels historically associated with deep bear markets . The index had barely budged from that zone for weeks, suggesting the rally on June 12 did little to restore genuine confidence .

Why traders don’t fully believe the rally

The market’s skepticism is not just cynicism—it’s grounded in the deal’s structure and recent history.

First, the 60-day framework is inherently fragile. Earlier in June, when Trump signaled he was in “no hurry” to sign an Iran deal, Bitcoin immediately flattened and daily trading volume dropped 9%, revealing how tightly crypto prices were tethered to any hint of delay or collapse . Polymarket betting odds on a permanent U.S.-Iran peace deal remained well below 50% even after the announcement, reflecting broad doubt that the memorandum would evolve into a durable settlement .

Second, earlier diplomatic false starts have conditioned traders to sell the news when talks stall. In April, Iran rejected a 45-day ceasefire proposal, collapsing peace talks that had briefly pushed Bitcoin above $70,000 within hours . Each breakdown in negotiations through the spring triggered immediate, sharp selloffs in Bitcoin and a flight from risk assets .

Analysts covering the June 12 bounce consistently described it as a relief rally off extreme-fear lows, not the beginning of a new uptrend driven by fundamentals . The prevailing view among traders was that the deal bought 60 days of calm, but that unresolved nuclear and sanctions issues could easily reignite risk-off moves well before that deadline.

What comes next

For crypto and broader financial markets, the path forward depends entirely on whether the 60-day window produces a permanent framework—or collapses under the weight of the unresolved issues it was designed to postpone. Until then, every statement from Washington or Tehran, every whisper about sanctions relief or uranium enrichment, will likely swing Bitcoin and risk assets with the same hair-trigger sensitivity traders have learned to expect.