The crypto market bounces back strongly after President Donald Trump announced a ceasefire between Israel and Iran. This news sparked a surge in Bitcoin and other cryptocurrencies on Tuesday.
Trump declared the ceasefire agreement on Monday evening via his social media platform, Truth Social. He wrote that both nations fully agreed to a complete and total ceasefire. On Tuesday morning, he confirmed the ceasefire was officially in effect.
Following this announcement, Bitcoin rose 2%, climbing from $104,000 to $106,000 as of Tuesday afternoon on Binance. Other cryptocurrencies followed suit. XRP gained 5%, Solana rose 3%, and Ethereum jumped 6%. Overall, the crypto market’s total capitalization increased by 3%, moving from $3.19 trillion to $3.27 trillion since Monday evening.
David Siemer, CEO of crypto asset manager Wave Digital Assets, explained the surge. “We’re seeing Bitcoin surge back to $105,000, and other major currencies like Ethereum, Solana, and XRP showing strong rallies of their own,” Siemer told Fortune. He attributed this rally largely to easing tensions in the Middle East after the U.S.-brokered ceasefire.
Despite Trump’s warnings on Tuesday against both countries for violating the truce, cryptocurrencies remained strong and continued their gains.
The conflict between Israel and Iran began earlier this month after a United Nations nuclear watchdog reported Iran’s non-compliance with safeguards. Israel responded with airstrikes targeting Iranian nuclear sites on June 13, killing top Iranian officials.
Iran retaliated with its own airstrikes, escalating the conflict. The situation intensified when Trump announced U.S. military airstrikes on multiple Iranian nuclear sites over the weekend.
“We have completed our very successful attack on the three nuclear sites in Iran,” Trump posted on Truth Social Saturday. “A full payload of BOMBS was dropped on the primary site, Fordow.”
Following the U.S. involvement, investors fled risky assets like cryptocurrencies. Bitcoin fell from $103,000 to below $100,000 on Sunday, marking its lowest level in over a month. Investors were concerned about Iran’s possible retaliation.
For now, the crypto market bounces back as traders respond positively to the ceasefire news. Siemer cautioned that markets may remain reactive over the coming weeks. He said institutional investors are closely watching developments and adjusting their risk appetite accordingly.
The future of the ceasefire remains uncertain, but for the moment, digital asset holders are enjoying the rebound.
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