Bitcoin, gold, and silver moved sharply higher after U.S. President Donald Trump announced a pause in the “Project Freedom” initiative.
According to market data shared by analyst Bull Theory, gold climbed 2.7% while silver surged 4.5%, adding nearly $1.05 trillion to their combined market value in just nine hours. In parallel, Bitcoin surged to reclaim a multi-month high.
Oil Drops Across the Board
Meanwhile, Energy markets moved in the opposite direction. Crude prices declined after the announcement, with Brent falling 1.81% to $107.88 per barrel and West Texas Intermediate (WTI) dropping 1.72% to $100.51.
The selloff extended beyond crude, with natural gas slipping 0.67%, gasoline down 0.93%, and heating oil losing 1.28%. The decline reflects easing concerns over potential supply disruptions, as the pause in “Project Freedom” signaled a reduction in immediate geopolitical risk around the Strait of Hormuz.
Why “Project Freedom” Was Paused
Trump said the decision followed progress toward a potential agreement with Iran, as well as requests from Pakistan and other countries. He noted that the pause would allow time to finalize negotiations, though the U.S. naval blockade of Iranian ports remains in place.
The situation remains contested. Journalist Jeremy Scahill cited an Iranian official who dismissed Trump’s claims, calling the operation unsuccessful and rejecting immediate negotiations unless the blockade ends.
“Project Freedom” involved significant military backing from the United States Central Command, including naval assets, aircraft, and thousands of personnel. Iranian officials had warned early on that any interference in the region would violate an existing ceasefire.
Bitcoin Climbs as Institutional Demand Builds
While traditional markets reacted to geopolitical developments, Bitcoin continued its upward trajectory. The asset rose 1.73% over 24 hours to $82,300 at press time, reclaiming the $82,000 level for the first time since January.
The move confirms a breakout from recent consolidation, supported by strong momentum. The 7-day RSI stands at 76.09, indicating bullish conditions. Meanwhile, the market sentiment improved, with the Fear & Greed Index shifting from Fear to Neutral.
Institutional demand is also playing a key role. U.S. spot Bitcoin ETFs recorded $467.35 million in net inflows on May 5, led by BlackRock’s IBIT fund. This marks the fourth straight day of positive flows.
The latest developments highlight a clear divergence across asset classes. Precious metals are benefiting from renewed geopolitical caution, energy markets are retreating amid easing supply fears, and Bitcoin is gaining strength on sustained institutional inflows. With negotiations around Iran still uncertain, traders are approaching the market cautiously.
Related: BlackRock’s European Bitcoin ETP IB1T Surpasses $1.1B in AUM, Holds 14,200 BTC