Under Trump's mediation, a ceasefire agreement has been reached in the Middle East, and BTC rebounded to $106,000 this morning
On June 23, after Trump announced on his social media platform 'Truth Social' that Israel and Iran had reached a phased ceasefire for 24 hours, this ongoing 12-day war in the Middle East finally came to a 'temporary' end.
Meanwhile, the price of Bitcoin rebounded from an earlier low of below $100,000 to over $106,000. The cryptocurrency market reacted quickly, as earlier in the weekend, influenced by news that the Strait of Hormuz might be closed, Bitcoin briefly fell below $99,000.
Today, influenced by the ceasefire news, the price of Bitcoin rebounded by over 5%, and Ethereum also saw an increase, climbing back above $2,400, improving the risk sentiment in the entire digital asset market.
At the same time, the ceasefire has alleviated concerns about military escalation and disruptions in global oil supply. Earlier that day, the Iranian parliament approved a proposal to close the Strait of Hormuz, which carries 25% of the world's oil transport.
Once the measures to close the Strait of Hormuz take effect, oil prices are expected to rise significantly, potentially reigniting inflation and delaying central bank interest rate cuts. However, the ceasefire has eased pressure on the energy market, restoring a degree of geopolitical stability and prompting capital to flow back into risk assets.
Currently, the market will closely monitor whether both sides adhere to the 24-hour ceasefire agreement and whether the Strait of Hormuz remains open. If the truce agreement holds, the macroeconomy could quickly stabilize, thereby boosting the stock and cryptocurrency markets.
However, any breach of the agreement or new tensions could push Bitcoin back into a safe-haven zone. Therefore, investors should closely monitor changes in the geopolitical situation and allocate assets wisely to cope with potential market fluctuations.
What are your thoughts on the rebound of BTC prices after the ceasefire agreement in the Middle East? How long do you think the effectiveness of this ceasefire agreement will last?
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