The crypto market has found its footing again, and this time, the trigger isn’t just technical, it’s geopolitical. A formal ceasefire between the US and Iran has eased global tensions, lifting investor mood and pushing digital assets higher.
Bitcoin, the world’s largest cryptocurrency, surged past the $70,000 mark, touching a high of $72,700 after news of the ceasefire broke. At the time of writing, it was trading around $71,778, up nearly 4.8% over the past 24 hours.
The rally wasn’t limited to Bitcoin. Ethereum rose over 7% to $2,248, while other major tokens also saw strong gains. Solana climbed 6.39%, Cardano jumped 8.08%, Avalanche gained more than 10%, and Zcash stood out with a sharp 23% rise.
Meme coins joined the rally as well. Dogecoin edged up 4.7%, while Shiba Inu gained over 5%.
The rebound follows a sudden de-escalation in tensions between the US and Iran. A last-minute diplomatic effort, reportedly supported by Pakistan, helped secure a ceasefire, reducing fears of further conflict.
This shift has improved global risk sentiment, encouraging investors to move back into riskier assets like cryptocurrencies and equities.
Ryan Lee, Chief Analyst at Bitget Research, believes the impact goes beyond just sentiment.
“The ceasefire-driven oil price collapse, triggered by the reopening of the Strait of Hormuz and eased geopolitical tensions, is a significant positive macro development for crypto,” he said.
Lee explained that falling oil prices could play a key role in supporting crypto markets.
“Lower oil prices directly reduce global inflation expectations, easing pressure on central banks and improving the liquidity environment that crypto thrives in,” he noted.
In simple terms, when inflation worries ease, central banks may not need to keep interest rates high for long. That creates a more favourable environment for assets like Bitcoin (BTC) and Ethereum (ETH).
The sharp rise in prices also led to large short liquidations in the market, which may have amplified the rally. However, Lee says this isn’t just a temporary spike.
“Today’s sharp crypto rally, accompanied by substantial short liquidations across BTC and ETH, should be interpreted as the early stages of this regime shift rather than a purely speculative squeeze,” he said.
According to him, the market is moving away from a cautious, risk-off phase to a more stable and positive outlook.
While the current mood is upbeat, some key factors will decide whether the rally continues.
“That said, oil dynamics and evolving Fed expectations remain the primary constraints on sustained upside,” Lee cautioned.
He added that if oil prices remain stable and inflation continues to cool, it could open the door for softer monetary policy later this year.
“A stable oil price around current levels combined with softening Fed hawkishness would reinforce the bullish case for crypto in the coming weeks,” he said.
For now, the ceasefire has given markets a breather, and crypto investors a reason to cheer. Whether this turns into a longer rally will depend on how global cues evolve from here.
(Disclaimer: Cryptocurrencies are volatile and high-risk in nature. The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)