"Thank you, Trump"…Bitcoin surges as much as 8% at one point

Trump urges passage of crypto bills on social media

Prospects of U.S.-Iran end-of-war talks also a factor

Institutions turn to net inflows into spot ETFs

Bitcoin’s price surged by nearly 8% at one point. With the possibility of talks between the United States and Iran being raised, analysts say comments by President Donald Trump signaling support for institutionalizing cryptocurrencies provided additional tailwinds.

According to CoinMarketCap on the 5th, Bitcoin traded at $74,000 around 4:20 a.m., up 7.8% from 24 hours earlier. It later gave back some gains but has been moving in the $72,000–$73,000 range. In South Korea, it has been holding around 105 million won. It has extended its rally after reclaiming the 100 million won level on the 3rd.

Some say expectations that the situation in the Middle East could stabilize sooner than anticipated helped revive investor sentiment. The New York Times reported on the 4th (local time) that Iranian intelligence authorities, via a third country, offered to hold back-channel contacts with the U.S. Central Intelligence Agency (CIA) to discuss conditions for ending the conflict. It also reported that Israeli Prime Minister Benjamin Netanyahu, aware of the possibility of behind-the-scenes communication between the United States and Iran, demanded an explanation from the White House.

Trump’s friendly stance toward the crypto industry is also cited as a factor behind Bitcoin’s rise. On the 3rd, Trump wrote on social media that the "GENIUS Act is the first step to making the United States the crypto capital, and the CLARITY Act is a measure to keep this huge and powerful industry in the United States," adding that "banks are threatening and undermining the GENIUS Act, which is unacceptable."

Trump signed the GENIUS Act last year, which explicitly calls for institutionalizing stablecoins, but major U.S. banks say additional legislation is needed to close loopholes in the framework. The CLARITY Act, which clarifies the legal classification of cryptocurrencies, also failed to pass the Senate due to opposition from banks.

Amid these shifts, institutional buying has continued, and Bitcoin spot exchange-traded funds (ETFs) recently turned to net inflows for the first time in about a month. According to TraderT, net inflows into U.S. Bitcoin spot ETFs totaled $461.45 million (about 676.5 billion won) on the 4th.

Despite the recent sharp rebound, the market mood suggests it is not easy to project further upside for Bitcoin. The move could be a temporary bounce driven by bargain hunting, and investor sentiment could cool sharply depending on developments in the Middle East conflict.

Reporter Kim Jin-sung jskim1028@hankyung.com