Bitcoin, Ether, and XRP Surge Following Trump’s Ceasefire Announcement
The crypto market surged on Monday evening, pushing bitcoin above $105,000 after Donald Trump announced a ceasefire agreement between Iran and Israel. This news instantly changed investor sentiment. But is this euphoria sustainable in an ever-fragile geopolitical context?
In Brief
- Bitcoin climbed to $105,000 after the announcement of a ceasefire between Israel and Iran.
- Ethereum and XRP also saw significant gains following the geopolitical détente.
- Tensions in the Middle East intensified market volatility, leading to massive liquidations.
The Trump Effect, When Geopolitics Boost Crypto
Donald Trump triggered a real earthquake in the crypto markets on Monday evening. On Truth Social, the U.S. president announced that “Israel and Iran have fully agreed on a complete and total ceasefire“.
This stunning statement instantly propelled bitcoin above $105,000, wiping out weekend losses in one swoop.
The investors’ reaction was immediate. Within a few hours, the leading crypto jumped 5%, almost fully recovering its value prior to the drop below $100,000 observed on Sunday.
This spectacular rebound reflects investors’ renewed appetite for risky assets amid easing geopolitical tensions.
The military escalation had weighed heavily on the markets. U.S. strikes on Iranian nuclear facilities on Saturday, followed by the Iranian “Besharat al-Faith” retaliation against the Al Udeid base in Qatar, had sown concern.
The explosions visible over Doha particularly shook investors, even though no damage or casualties were reported.
A Broad Rally That Surpasses Bitcoin
The euphoria is not limited to bitcoin. The entire crypto ecosystem benefits from this remarkable bullish momentum.
Ethereum gained 9% to reach $2,408, recovering much of its 10% drop seen earlier in the week. Solana did even better with an 11% gain, while Dogecoin rose 10%.
This broad rise is accompanied by increased volatility. CoinGlass data reveals that $491 million of crypto positions were liquidated in 24 hours.
Paradoxically, short positions represent most of these liquidations with $376 million, signaling that bearish bets were wiped out by the upward surge.
Bitcoin accounts for $161 million in liquidations, closely followed by Ethereum with $140 million. This situation perfectly illustrates the intensity of price movements and the difficulty in anticipating trend reversals in a tense geopolitical context .
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
The Capital Trends Behind the AI Computing Power Rebound: JPMorgan Fund Flows Reveal Retail Buy-In "Shrinking," Pouring Into Nvidia, SanDisk and Other Computing Power Core Companies
What has been revealed is not a "complete withdrawal of retail investors from AI," but rather a significant slowdown in overall market entry pace under macroeconomic pressure, with stock selections becoming more concentrated. In response to the Federal Reserve's unanimous decision to raise interest rates by 25 basis points, increasing the policy rate to 3.75%–4.00%, JPMorgan's assessment is: if this is simply a withdrawal of last year's "insurance-style rate cuts" during a shallow rate hike cycle—and if corporate earnings remain strong and the Middle East situation does not further spiral out of control—the stock market is still capable of absorbing rising interest rates.
Vote Result 7-2! Bank of Japan Raises Interest Rates at Fastest Pace Since 1990, Does Not Signal a Clearly More Hawkish Stance
The Bank of Japan has raised interest rates to 1.25%, marking the highest level since 1995 and the sixth increase since exiting the negative interest rate policy in March 2024. Out of the nine committee members, Asada and Sato voted against the hike, citing the current economic situation, reflecting ongoing internal disagreements over further tightening. In its statement, the Bank of Japan indicated it will continue to raise rates and adjust the degree of monetary easing, but the forward guidance language showed limited changes from the July statement, without sending notably more hawkish signals.
Crypto prices
More
