Bitcoin surges 0.7% to $106,160.1 on ceasefire optimism

Bitcoin's price surged to $106,160.1 on Wednesday, marking a 0.7% increase from the previous day. This rise came as traders expressed cautious optimism over a U.S.-brokered ceasefire between Israel and Iran, which appeared to be holding. The ceasefire, announced by U.S. President Donald Trump on Monday evening, had initially faced challenges, with both countries accused of breaching the agreement on Tuesday. However, by Wednesday, aerial strikes between Tehran and Jerusalem had significantly decreased, raising hopes that the ceasefire would endure.

The crypto market's reaction to the ceasefire was mixed. While Bitcoin managed to recoup some of its losses from the previous week, it remained within a $103,000 to $108,000 trading range, indicating that traders were still wary of the situation. The broader crypto market also showed signs of cooling off after Tuesday's rally, with major altcoins experiencing some profit-taking. This cautious sentiment was driven by the market's focus on whether the ceasefire would hold, as renewed hostilities between Israel and Iran had previously led to a significant decrease in risk appetite.

Crypto's speculative nature made it particularly vulnerable to shifts in sentiment. The market's reaction to the ceasefire highlighted the impact of geopolitical events on crypto prices, as traders remained on edge over the potential for renewed hostilities. Despite the cautious optimism, the market's focus on the ceasefire's durability suggested that traders were not yet fully convinced of its longevity. This uncertainty was reflected in the market's mixed reaction to the ceasefire, with Bitcoin's gains being tempered by profit-taking in major altcoins.