Bitcoin Surges 3.9% to $105,000 on Trump Ceasefire Announcement

Bitcoin's price surged past $105,000 following the announcement of a ceasefire between Israel and Iran by U.S. President Donald Trump. The news, posted on Truth Social, stated that a "Complete and Total CEASEFIRE" had been agreed upon by both nations. This unexpected development triggered a swift rebound in the cryptocurrency market, with Bitcoin leading the charge by rising 3.9% to reclaim levels above $105,000. The digital asset had briefly dipped below the $100,000 threshold just days prior.

The sudden price spike caught many short sellers off guard, resulting in significant liquidations across the crypto market. The rapid response highlights how closely digital assets react to geopolitical events. Analysts noted that Trump’s ceasefire claim shifted investor sentiment almost instantly, even though neither country involved had issued formal confirmation. This shift in sentiment led to a surge in the value of major digital assets, with other top 10 digital assets by market capitalization posting even stronger gains. Notably, Solana (SOL) and XRP outperformed the broader market, climbing over 7% each.

Bitcoin's market cap also enjoyed a 3.24% boost, climbing up to $2.09 trillion following the recent price surge. Additionally, the wider crypto market cap experienced a 2.1% surge after news of the ceasefire broke, amounting to $3.36 trillion. Despite the agreed upon deal between the two countries, brokered by Donald Trump, Israel’s Defence Minister accused Iran of violating the ceasefire only two hours after the deal was announced. Iran furiously denied the accusation, and Israel plans to “respond forcefully to Iran’s violation of the ceasefire with intense strikes” targeting the nation’s capital in Iran. It remains to be seen whether Israel will follow through with the threat, and how it will affect Bitcoin and the wider crypto market.

Market analysts caution that while markets are rallying on the ceasefire news, similar truces have historically been short-lived. However, the sharp rebound shows that fear may have reached its peak and that many altcoins could be poised for further gains if tensions remain contained. The rapid response of the crypto market to geopolitical events underscores the sensitivity of digital assets to global developments. The sudden price spike and subsequent liquidations of short positions highlight the volatility and reactivity of the crypto market to external factors.