Bitcoin surged past $105,000 amid a broad cryptocurrency market rebound following Israel and Iran’s ceasefire announcement. The de-escalation eased fears of a potential Strait of Hormuz closure, removing pressure on risk assets and restoring investor confidence.
The Strait – a critical global oil transit chokepoint – faced closure threats during heightened tensions, raising concerns about oil price spikes and inflationary impacts. Investor anxiety had previously contributed to crypto market volatility, with Bitcoin briefly plunging below key support levels before the truce.
Ethereum mirrored Bitcoin’s recovery, climbing back above the $2,400 threshold as improved market sentiment spread across digital assets. The rebound highlights cryptocurrencies’ continued sensitivity to geopolitical developments and macroeconomic uncertainty.
Despite the immediate rally, market participants maintain caution citing the fragile nature of the ceasefire. Analysts warn that renewed hostilities between the nations or breached truce terms could rapidly reverse gains, leaving the market vulnerable to sudden downturns.
This respite offers breathing room for crypto markets, yet sustained stability remains heavily contingent on prolonged geopolitical calm. Traders continue monitoring Middle Eastern developments for signals affecting future price trajectories.