Altcoins surge 11.8% as Trump announces Iran-Israel ceasefire

Altcoins experienced a significant surge following the announcement by U.S. President Donald Trump that a ceasefire between Iran and Israel had come into effect. This development triggered a sharp recovery across major altcoins, largely erasing the losses incurred over the weekend due to the conflict. The rally was driven by relief from the seeming resolution of the crisis, which had sent crypto markets tumbling.

However, the sustainability of this rally remains uncertain. Israel declared that Iran had launched missiles mere hours after Trump’s announcement, vowing to respond with force. Tehran, on the other hand, denied the allegations and warned of a decisive response to any further aggression. This ongoing tension raises questions about the stability of the ceasefire and its impact on the crypto market.

Ganesh Mahidhar, an investment professional, anticipated further volatility in the coming days, citing the unpredictable nature of the geopolitical situation. He highlighted Bitcoin's resilience in the face of these developments, noting its continued dominance despite the fluctuations in risk assets. Mahidhar also pointed to policy and liquidity drivers, such as the GENIUS Act and the promise of new capital infusion, as potential reasons for market optimism.

In the short term, geopolitical stability is seen as a key driver for market movements. However, longer-term gains are expected to depend on factors such as reduced inflation, decreasing interest rates, and increasing adoption of stablecoins. The sequence of events leading up to the ceasefire announcement involved U.S. and Israeli forces targeting Iranian nuclear facilities, followed by Iran's retaliation against a U.S. military installation in Qatar. This escalation had kept markets on edge until Trump's announcement.

The surge in altcoin prices was led by Sui, which jumped 11.8% to $2.80, followed by Chainlink with a 9.7% gain to $13.04, and Avalanche climbing 5.6% to $18.04. Other notable gains included Solana rising 7.4% to $144.14, XRP gaining 7.8% to $2.18, and Dogecoin jumping 6.5% to $0.1634. Ethereum and Cardano also saw significant increases, with Ethereum up by 6.3% to $2,402 and Cardano climbing 6% to $0.5799. Market experts attributed the surge directly to the ceasefire announcement, highlighting crypto's sensitivity to major geopolitical developments.

Asia-Pacific markets also rallied on the ceasefire announcement, with South Korea’s Kospi surging, Japan’s Nikkei 225 climbing, and Hong Kong’s Hang Seng rising. Bitcoin led the crypto recovery, surging 3.1% to top $105,000 and nearly fully recovering to pre-weekend levels. The world's largest crypto had fallen below the psychologically important $100,000 level on Sunday before staging its comeback.

In summary, the ceasefire announcement between Iran and Israel triggered a significant rally in altcoins, with major cryptocurrencies erasing weekend losses. However, the sustainability of this rally remains uncertain due to ongoing geopolitical tensions. Experts warn of a fragile rally, citing short-term geopolitical relief but pointing to inflation, interest rates, and stablecoin adoption as key long-term drivers. The market's response to the ceasefire highlights the sensitivity of crypto prices to major geopolitical developments and the potential for further volatility in the coming days.