Crypto Markets Surge 7% as Trump Brokers Middle East Ceasefire

Cryptocurrency markets experienced a significant rally on Tuesday, following an announcement by U.S. President Donald Trump that he had brokered a ceasefire between Israel and Iran. This development led to a surge in major cryptocurrencies, with Ether, Solana, and Cardano each spiking by approximately 7% within a 24-hour period. Ether climbed back above $2,400, while Solana and Cardano rose over key support levels at $140 and 50 cents, respectively.

Trading volumes in the crypto market also rebounded after a tumultuous weekend that saw nearly $600 million in long liquidations. Other notable cryptocurrencies, including XRP, BNB Chain’s BNB, and Dogecoin, also saw gains ranging from 4% to 6%. The broader CoinDesk 20 index, which tracks the largest tokens, rose by over 3%.

The market's positive response was driven by a wave of macro relief, as geopolitical tensions eased following Trump's announcement. Brent crude prices slipped by 1.8%, and S&P 500 futures turned positive, despite the lack of formal confirmation from either the Israeli or Iranian governments. Traders quickly rotated back into altcoins, betting on a cooldown in volatility.

Analysts noted that while the market may soon normalize and move past the latest geopolitical episode, there are concerns about a potential shake-out to stop out recent longs. Additionally, the negative FOMO signals from public companies looking to establish new Bitcoin treasuries as part of their financial engineering strategies were highlighted as a potential risk.

Bitcoin, meanwhile, continues to consolidate near $105,000, testing overhead resistance as institutional flows hold steady. Its ability to hold above $100,000 underscores its resilience amid geopolitical and macro volatility. As institutional inflows and ETF demand rebound, Bitcoin's decoupling from traditional risk-off signals suggests a maturing role as a macro hedge in the long term. However, some traders caution that the next leg of the move could be driven by profit-taking, especially in overheated tokens such as Ether.