Crypto Market Rebounds on Israel-Iran Ceasefire Announcement: Bitcoin and Other Cryptocurrencies Surge
The broader crypto market experienced a significant rebound on Tuesday after President Donald Trump announced a pause in the escalating conflict between Iran and Israel. Despite his follow-up warnings to both countries, the announcement of a complete and total ceasefire between the two nations sent positive vibes through the crypto market.
According to Binance, Bitcoin jumped 2% following the ceasefire agreement, climbing from $104,000 to $106,000 as of Tuesday afternoon. Other cryptocurrencies also surged on the news, with XRP gaining 5%, Solana gaining 3%, and Ethereum gaining 6%. The crypto market as a whole added 3% to its market cap since the announcement, growing from $3.19 trillion to $3.27 trillion since Monday evening.
"We're seeing Bitcoin surge back to $105,000 and other major currencies like Ethereum, Solana, and XRP showing strong rallies of their own," said David Siemer, CEO of crypto asset manager Wave Digital Assets. "This is largely due to easing tensions in the Middle East after the U.S.-brokered ceasefire between Israel and Iran."
The latest conflict between both countries started earlier this month when a United Nations-backed nuclear watchdog released a report claiming that Iran was not complying with nuclear safeguards. Shortly after the report's release, Israel launched a series of airstrikes on June 13 targeting nuclear sites in Iran and killing top Iranian officials. The threat of all-out war between the two nations grew in recent weeks as Iran retaliated by launching airstrikes of its own against Israel, and the two nations continued to exchange fire. However, the conflict escalated to a new level when Trump announced that the U.S. military had conducted airstrikes on multiple nuclear sites in Iran over the weekend.
News that the U.S. had become involved in the conflict between Iran and Israel sent investors fleeing volatile assets like cryptocurrencies. Bitcoin fell from $103,000 to below $100,000 on Sunday for the first time in more than a month, as investors braced for Iran's response to the attack.
It remains to be seen if the ceasefire will hold or what will happen next. But for now, cryptocurrency holders are enjoying the rebound after previous lows on Tuesday.
"There is reason to believe that markets may continue to be reactive over the next few weeks," Siemer said. "Institutional players in the digital asset space are closely watching developments and assessing their risk appetite."
This story was originally featured on Fortune.com.
