US President Donald Trump recently announced a groundbreaking ceasefire between Israel and Iran, bringing hope for an end to the 12-day conflict. Trump shared the news on his Truth Social platform, declaring, “It has been fully agreed by and between Israel and Iran that there will be a Complete and Total CEASEFIRE.” Iranian officials also confirmed the ceasefire agreement, with Tehran agreeing to halt hostilities, provided Israel ceases its attacks, according to Reuters.
### Digital Currency Markets Respond
Following the announcement of the ceasefire, the price of Bitcoin surged by about 6%, moving from just over $100,000 to nearly $106,000 during Asian trading hours on Tuesday. The digital currency slightly retreated to just over $105,000 but has since regained its losses from the past few days, returning to its usual trading range. This recovery came after Bitcoin dropped below six figures on Monday, amid US airstrikes on Iranian nuclear sites, for the first time since early May. Additionally, S&P 500 futures indicated a slight increase, suggesting a positive opening for the US stock market on Tuesday.
Michaël van de Poppe, founder of MN Capital, suggested that with the diminishing threat of a global conflict, we might see significant shifts in the macroeconomic landscape. He anticipates the dollar’s decline, the Renminbi’s breakout, consolidation of gold, falling rates, and a major bullish cycle for Bitcoin and other digital currencies.
### Recovery in the Digital Currency Market
The digital currency market experienced a significant boost, gaining around $170 billion in capitalization in just 12 hours, bringing the total market cap back to $3.35 trillion. Ethereum led the recovery with a 7% increase to reclaim the $2,400 mark, aiming for a breakthrough above the $2,500 resistance level.
Other digital currencies also posted strong gains; Solana was up 7.6%, Sui rose by 11.5%, Chainlink increased by 10.7%, Avalanche went up 8.5%, and Hedera saw a more than 12% increase.
The ceasefire between Israel and Iran not only signals a possible end to hostilities but also appears to have instilled a sense of optimism in the digital currency markets, reflected by the immediate positive price actions across various cryptocurrencies.
“Following Trump’s announcement of a ‘complete and total’ ceasefire between Israel and Iran, the digital currency market sees a significant uptick. #Bitcoin #Ceasefire #MarketRecovery”
