Bitcoin and the wider market of cryptography rebounded Tuesday after President Donald Trump announced a break in climbing the conflict between Iran and Israel, and despite his follow -up warnings to the two countries.
“It was fully agreed and between Israel and Iran that there will be a full and total ceasefire,” wrote Trump in an article on social social on Monday evening. In another position on Tuesday morning, the president announced that the ceasefire was “now in force”.
After the announcement of the ceasefire agreement on Monday evening, Bitcoin jumped by 2%, going from $ 104,000 to $ 106,000 Tuesday afternoon, according to Binance. Other cryptocurrencies have also increased on news, XRP winning 5% during this period, Solana winning 3% and Ethereum winning 6%. The cryptography market as a whole has added 3% to its market capitalization since the announcement, going from 3.19 billions of dollars to 3.27 billions of dollars since Monday evening.
“We see Bitcoin going back to $ 105,000 and other important currencies such as Ethereum, Solana and XRP showing strong rallies,” said David Siemer, CEO of Crypto Asset Manager Wave Digital Assets, said Fortune. “This is largely due to the softening of tensions in the Middle East after the ceasefire of the United States between Israel and Iran.”
Trump continued to reprimand the two nations on Tuesday morning for taking measures which, according to him, violated the terms of the truce, but the cryptocurrencies have ignored any diplomatic hiccups and remained strong
The last conflict between the two countries began earlier this month, when a nuclear guard dog supported by the United Nations published a report stating that Iran did not comply with nuclear guarantees. Shortly after the report was released, Israel launched a series of air strikes on June 13 targeting nuclear sites in Iran and killing senior Iranian officials.
The threat of a total war between the two nations has increased in recent weeks while Iran has retaliated by launching its own air strikes against Israel, and the two nations continued to exchange fire. However, the conflict increased to a new level when Trump announced that the US military had made air strikes on several nuclear sites in Iran during the weekend.
“We finished our very successful attack on the three nuclear sites in Iran,” said Trump on Truth Social on Saturday. “A complete payload of bombs has been abandoned on the main site, Fordow.”
The news that the United States was involved in the conflict between Iran and Israel sent investors a future of volatile assets such as cryptocurrencies. Bitcoin went from $ 103,000 to $ 100,000 on Sunday for the first time in more than a month, while investors were preparing for Iran’s response.
It remains to be seen if the ceasefire will pull, or what will happen next. But for the moment, cryptocurrency holders appreciate the rebound after the previous stockings on Tuesday.
“There are reasons to believe that the markets can continue to be reactive in the coming weeks,” said Siemer. “The institutional actors in the space of digital assets look closely at the developments and assess their appetite for risks.”
