As investors hope that the war, which has shaken global markets and disrupted energy supplies, may soon be coming to an end, the three major US stock indexes rose sharply. The cryptocurrency market rallied across the board along with rising risk sentiment, with Bitcoin (BTC) bouncing from 66K to above 68K, and Ethereum (ETH) rebounding to around $2,100.

Iran Loosens Stance for the First Time, Dawn of the End of the War?

Iranian President Masoud Pezeshkian stated for the first time that the Islamic Republic of Iran has the "necessary will" to end the war, provided that it receives guarantees that "aggression will not happen again."

US President Trump stated that the US plans to withdraw from Iran within two to three weeks, and the Strait of Hormuz will automatically open.

The five-week war has caused widespread infrastructure damage. The blockade of the Strait of Hormuz cut off energy supplies, causing oil prices to soar, and also raised concerns about rising inflation and slowing economic growth.

US economic data showed that consumer confidence unexpectedly rose in March due to slightly optimistic views on business and labor market conditions. Job openings fell in February, and the pace of hiring slowed, indicating weaker labor demand before the war.

US Stock Indexes Rally, Analysts Warn Against Premature Optimism

On Tuesday, all three major US stock indexes rose sharply. However, summarizing the performance in March, the S&P 500 index still fell by 5.1%, marking its worst monthly performance since 2022. The Dow Jones Industrial Average fell by 5.4%, ending its previous 10-month upward momentum. The Nasdaq index fell by 4.8%. The Nasdaq index is still down more than 10% from its recent intraday high. The Dow and the S&P 500 are down more than 8% and 6% from their recent highs, respectively.

Bloomberg analyst Brendan Fagan said:

"Iran's signal on Tuesday of its willingness to end hostilities sparked euphoria, but it seems premature right now. Much depends on Tehran's definition of 'basic guarantees'—especially if these guarantees align with the conditions outlined in Iran's response to the US ceasefire proposal, which could be a high hurdle for Washington."

Bitcoin Rebounds to 68K, Market Sentiment Recovers Slightly

The cryptocurrency market rallied across the board along with rising risk sentiment, with Bitcoin bouncing from 66K to above 68K, and Ethereum rebounding to around $2,100. The Fear and Greed Index recovered slightly to 30, and the Altcoin Season Index also rose to 51. Within 24 hours, $280 million in positions were liquidated, with short positions making up the majority.

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