On Monday, the crypto market breathed a little easier. Iran and Israel announced a pause in hostilities, giving prices a short-lived boost. Earlier, a direct clash between the two countries — the first since April — had spooked investors and pushed assets lower.

Bitcoin returned to about $64,000 after briefly slipping under $63,000 at the outset of the strikes, CoinDesk reports. Overall, the market remained under pressure: the Fear & Greed Index fell to very low levels, and total market capitalization is still a long way from last year's peaks.

It all started on Sunday. Israel carried out strikes on Beirut. In response, Iran launched nearly 30 ballistic missiles at Israel — the first such attack since the April 8 ceasefire. Israel then struck military targets in central and western Iran.

The escalation rattled markets. Bitcoin pulled back from an intraday high of $64,128 to around $63,316 as investors fled to safe-haven assets. Oil spiked sharply — Brent rose more than 4%.

On Monday, both sides announced a pause. Iran's military command said offensive operations had ceased and noted that Israel had "been taught a lesson."

Prime Minister Benjamin Netanyahu said the offensive was "paused." According to a regional source cited by the Associated Press, the US told Iran that Israel would stop strikes if Iran halted rocket fire.

President Trump posted on Truth Social that "both sides are ready for an immediate ceasefire" and that "final negotiations on 'peace' are ongoing."

But the market rebound is tentative. In recent weeks, Bitcoin plunged from about $77,300 to $59,100 amid worsening geopolitics, then recovered slightly above $60,000 before the latest flare-up. The two-month truce had been cracking for weeks as rocket and drone strikes in the region increased.

Both Iran and Israel have set conditions for keeping the pause. Iran warned of a tougher response if Israeli operations in Lebanon continue. Netanyahu vowed a "forceful response" to any new attacks. How long the rally will last largely depends on whether this fragile truce holds through negotiations between the US and Iran.