The cryptocurrency market is buzzing with optimism as Bitcoin (BTC), Ethereum (ETH), and XRP post steady gains and attempts for a lavish breakout.
Fueled by a combination of factors like geopolitical developments and market dynamics, the current market sentiment shows high chances of a bullish reversal, potentially leading all cryptocurrencies to new highs in nearer timeline.
From weekly low, Bitcoin price has surged 8% to $106,500, Ethereum also climbed nearly 14% to $2,450, and XRP jumped 9.2% to $2.15, after the U.S. President Donald Trump announced a “complete and total” ceasefire between Israel and Iran.
But is the recent Middle East de-escalation the sole driver of this rally, or are other forces at play? The ceasefire announcement from the U.S. president followed tense hours involving U.S. airstrikes on Iranian nuclear facilities and Iran’s retaliatory missile strikes on a U.S. base in Qatar.
Reacting to this, cryptocurrencies—which are often viewed as high volatile assets—responded swiftly, with Bitcoin reclaiming $105,000 and altcoins; Ethereum and XRP riding the wave of renewed investor confidence.
War-based Rally; Yes or No?
However, the rally is not solely tied to geopolitics as digital asset funds have seen 10 consecutive weeks of inflows, with $1.24 billion poured in last week alone, including $12.7 billion for Bitcoin and $2.4 billion for Ethereum year-to-date.
Accompanying both the leaders, XRP is also gaining traction with it bolstered by institutional investments from firms like Webus International ($300 million), Trident Technologies ($500 million), and VivoPower ($121 million).
Despite this bullish momentum, traders and investors have remained cautious as geopolitical risks linger, as any further escalation could trigger an economic shock and drag crypto prices down. For now, the crypto market is riding a wave of optimism but volatility still remains a hallmark.