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Bitcoin jumps to $71.5K as Trump pauses Iran strikes

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Oil slides as Trump 15% tariffs hit demand outlook

Bitcoin rose sharply on March 23 after U.S. President Donald Trump said Washington had held constructive talks with Iran and would pause planned military strikes for five days. 

Summary

  • Bitcoin rebounded from below $68,500 and briefly touched $71,500 after Trump announced a strike delay.
  • Trump said US-Iran talks were productive and paused planned military action for five days.
  • The rally liquidated nearly $270 million in short positions and pushed daily crypto liquidations higher.

The move lifted market sentiment after several sessions of pressure linked to Middle East tensions. The rebound also triggered a wave of short liquidations across the crypto market.

Bitcoin had fallen below $68,500 earlier in the session as traders reacted to geopolitical uncertainty and broader risk-off sentiment. The asset then reversed course within hours and climbed by about $3,000, reaching $71,500 before giving up part of the gain.

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At the time of reporting, Bitcoin traded near $71,000. The move marked its first return to the $71,500 area since last Thursday and showed how quickly sentiment shifted after Trump’s latest comments on the Iran situation.

Trump said the United States and Iran had held “very good and productive conversations” over the previous two days. He also said he had instructed the “Department of War” to delay military action against Iranian power plants and energy infrastructure for five days while talks continue.

The statement pointed to a possible easing in tensions after weeks of conflict. It also came about 36 hours after Trump warned he would “obliterate” Iran if the Strait of Hormuz was not reopened safely, making the change in tone a key factor in the market reaction.

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Short traders face heavy losses

Bitcoin’s fast recovery caught bearish traders off guard. Data from CoinGlass showed that nearly $270 million in short positions were liquidated within the past hour as prices moved higher.

Total liquidations across the crypto market reached about $780 million by press time. More than 200,000 traders were liquidated over the same period, showing the scale of the sudden reversal and the pressure on leveraged positions.

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Crypto World

Stablecoins Do Not Threaten Banking Just Yet: Analyst

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Stablecoins Do Not Threaten Banking Just Yet: Analyst

The impact of stablecoins on the banking sector appears “limited” at the current phase of the adoption cycle, but banks could face increasing competition and an erosion of market share as the stablecoin sector and tokenized real-world assets (RWAs) grow in market capitalization. 

“So far, the use of stablecoins remains limited, but their market capitalization exceeded $300 billion at the end of last year,” Abhi Srivastava, associate vice president of Moody’s Investors Service Digital Economy Group, told Cointelegraph.

The stablecoin market cap has surged past $300 billion. Source: RWA.xyz

The role of stablecoins in payments, cross-border commerce and onchain finance is “expanding,” despite their currently limited role, Srivastava said, adding that existing payment systems in the US are already “fast, low-cost and trusted.” He said:

“For the banking sector, at this stage, disruption risk appears limited. In the near term, US rules that prohibit stablecoins from paying yield mean they are unlikely to replace traditional deposits at scale domestically.”

However, over time, growing adoption of stablecoins and tokenized RWAs, traditional or physical financial assets represented on a blockchain by a token, could place “pressure” on the banking sector, leading to deposit outflows and reduced lending capacity, he said.

Stablecoin regulatory policy has become a hot-button issue among crypto industry executives and those in the banking sector, with fears that yield-bearing stablecoins could erode banking market share proving to be a stumbling block for the CLARITY crypto market structure bill in Congress. 

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Related: Stablecoins behave like FX markets as liquidity splits: Eco CEO

CLARITY Act stalled, as banks fight yield-bearing stablecoins

The Digital Asset Market Clarity Act of 2025, also known as the CLARITY Act, is a comprehensive crypto market regulatory framework that establishes an asset taxonomy, regulatory jurisdiction and oversight over the crypto markets.

The CLARITY crypto market structure bill. Source: US Congress

It is now stalled in Congress after a group of crypto industry companies, led by cryptocurrency exchange Coinbase, publicly stated opposition to earlier drafts of the bill.

A lack of legal protections for open-source software developers and a prohibition on yield-bearing stablecoins were among some of the most contentious issues cited by crypto industry opponents of the legislation.

Several attempts have been made by US lawmakers and the White House to negotiate a bill acceptable to both the crypto industry and the bank lobby.

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Earlier this month, North Carolina Senator Thom Tillis said he plans to release an updated draft bill proposal that would be acceptable to both sides; however, the bill has reportedly received pushback, according to Politico, and has yet to be publicly released. 

However, other crypto industry executives and market analysts have warned that if the CLARITY Act fails to pass, it could open the crypto industry up to future regulatory crackdowns by hostile lawmakers and officials.

Magazine: Stablecoins will see explosive growth in 2025 as world embraces asset class