Bitcoin has surged beyond $105,000 after a dramatic announcement by President Donald Trump that confirmed a complete ceasefire between Israel and Iran.
Trump has declared that the 24-hour dual-stage ceasefire will be “officially finished” to be launched by Iran and then Israel.
Iran and Israel’s ceasefire impact on markets
The crypto market responded quickly. Over the weekend, Bitcoin fell below $100,000 hours ago, under the news that Hormuz could close. Today, BTC rebounded more than 5% in the announcement.
Ethereum also gathered, climbing over $2,400, improving risk sentiment in the broader digital asset market.
The ceasefire removed the immediate fear of further military escalation and global oil destruction. And de-escalation was widely expected as crude oil prices began to fall quickly despite Iran’s targets at U.S. bases in Qatar.
Earlier that day, Iran’s parliament approved a proposal to close the Strait of Hormuz, which handles 25% of the world’s oil cargo.
If that closure were in effect, it could have pushed oil prices up sharply, rekindled inflation and slowed down central bank interest rate cuts.
Instead, the ceasefire reduced pressure on the energy market, regaining some geopolitical stability and bringing capital back to risky assets.
The market will closely monitor whether both sides are complying with 24-hour ceasefire protocols and whether the Strait of Hormuz is open.
If the armistice is held, the macroeconomic stability could quickly return and boost both stocks and crypto. However, violations and updated tensions can send Bitcoin back into risk-off territory.
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