Crypto market bounces back after Israel, Iran ceasefire

Bitcoin and the broader cryptocurrency market bounced back on Tuesday following an unexpected announcement by former U.S. President Donald Trump that Israel and Iran had agreed to a ceasefire, temporarily calming fears of an escalating conflict in the Middle East.

“It has been fully agreed by and between Israel and Iran that there will be a complete and total ceasefire,” Trump wrote Monday evening on Truth Social. In a follow-up post on Tuesday morning, he added that the ceasefire was “now in effect.”

The crypto market reacted swiftly to the news. Bitcoin surged 2%, rising from $104,000 to $106,000 as of Tuesday afternoon, according to Binance. Other major digital assets followed suit: Ethereum gained 6%, XRP rose 5%, and Solana added 3%. In total, the cryptocurrency market grew by 3%, with its overall market capitalization increasing from $3.19 trillion to $3.27 trillion since Monday evening.

“We’re seeing Bitcoin surge back to $105,000 and other major currencies like Ethereum, Solana, and XRP showing strong rallies of their own,” said David Siemer, CEO of crypto asset manager Wave Digital Assets, in a statement to Fortune. “This is largely due to easing tensions in the Middle East after the U.S.-brokered ceasefire between Israel and Iran.”

Despite issuing stern warnings to both nations on Tuesday morning for allegedly breaching parts of the truce, Trump’s comments did little to rattle crypto markets, which remained resilient throughout the day.