Bitcoin, Ethereum, and XRP, along with the S&P 500, rose on Monday after President Donald Trump said the U.S. will pause strikes on Iran’s power plants and energy infrastructure for five days. (The S&P was up 1.5% in Monday afternoon trading.)
The decision comes after Iran said that if the U.S. hit Iranian power plants, Tehran would “irreversibly destroy” key energy facilities in the Middle East region, defiantly warning Trump that would mean “say[ing] goodbye to electricity.”
Bitcoin (BTC) rose 5.2%, to $71,400, on Monday morning in New York. By the afternoon, it was trading at $71,047.51, up about 3.4%. The price of Ethereum (ETH) was up 3.4%, to $2,152.22, and XRP was up 3.6%, to $1.44, while Solana (SOL), a smaller cryptocurrency token, was also up 3.4%, to $2,152.11.
Cryptocurrencies have been on a roller-coaster ride, with volatility sending prices up and down since the outbreak of war in Iran, after U.S.-Israeli strikes began three weeks ago on February 28.
Tehran has since retaliated, targeting U.S. and allied interests in the region. That’s resulted in American casualties and a possible shutdown of the Strait of Hormuz, a key oil trade route, causing oil prices to surge over $100 a barrel and higher prices at the pump.
So far this year, Bitcoin and other cryptocurrencies have taken a hit, with prices reaching a two-week low in Asia, per Bloomberg.
As Fast Company previously reported, at the beginning of March, BTC was down more than 18% year to date. XRP has been down 23% since January, and Ethereum has been down more than 30% since January.
Although Trump’s latest move offers hope that the Iran conflict could be easing, the situation remains volatile and new developments could quickly reverse the crypto market’s upward trend.