In short
- Bitcoin jumped to a high of over $72,000 when US President Donald Trump announced a two-week ceasefire with Iran.
- US oil fell 22% from $117 to $91 a barrel as the ceasefire allows the reopening of the Strait of Hormuz.
- Analysts argued that the ceasefire provides “vulnerable breathing space,” noting gaps in the ceasefire deal and pointing to upcoming macro events.
Bitcoin rose alongside the broader financial markets on Tuesday, after President Trump announced a… conditional ceasefire of two weeks with Iran.
The leading crypto extended its Tuesday gains, peaking at $72,379 Wednesday morning. Bitcoin currently trading around $71,610, up 3.5% in the past 24 hours, according to CoinGecko data.
The rally liquidated $425 million in short crypto positions, while long liquidations added another $170 million per share MintGlass facts. Altcoins including Zcash, LayerZero and Ethena posted double-digit gains on the news.
Also the S&P 500 index shot up more than 3.6% to $6,838, hovering below the all-time high of $7,043. Similar gains were recorded in Japan’s Nikkei index and South Korea’s KOSPI index. American oil, on the other hand decreased more than 22%, from more than $117 per barrel to $91.
The ceasefire agreement between the US and Iran
Trump stated that based on conversations with Pakistani leaders, he agreed to “suspend the bombing and attacks on Iran for a period of two weeks,” provided that Iran agrees to the “COMPLETE, IMMEDIATE and SAFE OPENING of the Strait of Hormuz,” according to a TruthSocial after Wednesday. The ceasefire gives Iran and Oman the opportunity to do that charge costs on ships that cross the strait, the proceeds of which go to reconstruction.
The president’s critics called the deal another example “TACO”– “Trump Always Chickens Out” – after walking back his threats earlier this week that “an entire civilization will die tonight” unless Iran reopens the Strait of Hormuz.
The ceasefire opens the door for better global cryptocurrency adoption – esp stable coins– and a potentially sharp market-wide increase, said Maksym Sakharov, co-founder and CEO of WeFi, a banking infrastructure provider. Declutter.
“The pause provides fragile breathing space after weeks of escalation, but skepticism remains high over whether it will last beyond two weeks,” Andri Fauzan Adziima, research leader at cryptocurrency exchange Bitrue, told reporters. Declutter. He noted that while proponents see it as a pragmatic negotiation that calmed markets, opponents argue it “erodes US credibility and deterrence, turning maximalist rhetoric into short-term off-ramps.”
The move reflects past patterns in trade and foreign policy, Adziima said, and delivers immediate relief – “better TACO Tuesday than World War III” – but leaves core issues unresolved – especially because the ceasefire does not cover Lebanon, where Israeli airstrikes have taken place. continued.
“Despite the jitters and movements of a possible breakout, the meme these days is more that nothing ever happens,” Justin d’Anethan, head of research at crypto research firm Arctic Digital, told me. Declutter.
ETF inflows continue to offer hope, he said, but are “contained by broader risk-off sentiment.”
“I suspect many will look back on this level, not necessarily as the bottom of the cycle, but as a place where long-term investors were keen to average,” d’Anethan added. “For now, all eyes are on the Strait of Hormuz.”
Sentiment in the prediction market has turned around Myriadowned by Declutter parent company Dastan. Users now point one 55% probability that Bitcoin then rises to $84,000, up from the 43% before the ceasefire, and a 88% chance The average number of ships transiting the Strait of Hormuz will return to above 15 before May – up from 65% yesterday.
There are upcoming macro events looming
The optimism comes with a caveat. Sakharov warned that upcoming macro events should be closely monitored. “The US CPI is expected to rise, which could dampen any rate cuts or economic growth,” he said.
From a regulatory perspective, progress was made Tuesday when the Federal Deposit Insurance Corporation approved a proposal to implement the requirements and standards of the GENIUS Act.
Sakharov noted that now that stablecoins require 1:1 backing with cash, “there will no longer be any excuse for using stablecoins,” increasing trust and adoption.
While the two-week pause is a relief, Bitcoin’s path forward remains uncertain depending on whether the ceasefire holds and how macro data unfolds.
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