The value of Bitcoin rose to over $105,000 after the dramatic announcement by President Donald Trump, who confirmed a complete ceasefire between Israel and Iran.
Trump officially announced the end of the 12-day war, following a two-phase ceasefire lasting 24 hours, which was initiated first by Iran and then by Israel.
The impact of the ceasefire between Iran and Israel on the market
Cryptocurrency markets responded quickly. Over the weekend, the price of Bitcoin fell below $100,000 just hours before the announcement of a potential closure of the Strait of Hormuz. Today, the price of Bitcoin has risen by more than 5% after the announcement.
The value of Ethereum also rose, surpassing $2,400, as risk appetite improved in the broader digital asset markets. The ceasefire eased immediate concerns about further military escalation and a global disruption in oil supplies.
The cryptocurrency market is recovering after the announcement of the ceasefire.
Moreover, the de-escalation was widely expected, as oil prices began to fall early despite Iran targeting U.S. bases in Qatar. Earlier today, the Iranian parliament approved a proposal to close the Strait of Hormuz, through which 25% of global oil shipments pass.
If this closure were implemented, it could have led to a sharp increase in oil prices, potentially reigniting inflation and delaying the central bank's interest rate cuts. However, the ceasefire eased pressure on the energy market and restored some geopolitical stability. This led to a return of capital flows into riskier assets.
Markets will closely monitor the commitment of both sides to the 24-hour ceasefire protocol, and whether the Strait of Hormuz will remain open. If the truce holds, macroeconomic stability could return quickly, bolstering stock and digital currency markets.
However, any defaults or renewed tensions could bring Bitcoin back into low-risk territory.