- Bitcoin surges past $72K, hitting a three-week high after ceasefire signals boost sentiment.
- Oil plunges nearly 23% as the reopening of the Strait of Hormuz eases global supply fears.
- Crypto market added $150B as $400M in short positions were liquidated in hours.
Markets turned on a dime after Iran signaled a temporary cooling of tensions, announcing a two-week “safe passage” through the Strait of Hormuz.
US President Donald Trump said he had agreed to a proposed two-week ceasefire, on the condition that shipping traffic continues through the Strait of Hormuz. Iran signaled it would accept the pause if attacks are halted, according to Foreign Minister Abbas Araghchi.
The agreement followed rising tensions, with Trump earlier warning of severe consequences if no deal was reached. Pakistan, acting as a mediator, has invited both sides for further talks in Islamabad.
“Subject to the Islamic Republic of Iran agreeing to the complete, immediate, and safe opening of the Strait of Hormuz, I agree to suspend the bombing and attack of Iran for a period of two weeks. This will be a double-sided ceasefire,” President Trump said via Truth Social.
Oil Takes a Heavy Hit
Oil prices reacted first, and hardest. Crude dropped nearly 23% in under 12 hours, sliding from around $116 to near $91. It marks one of the sharpest single-day drops in years.
The reasoning was simple: if the Strait of Hormuz remains open, the risk to global oil supply drops sharply. Traders who had priced in disruption rushed to unwind positions, sending prices lower at speed.
Bitcoin Leads the Risk Rally
Crypto markets didn’t wait around. Bitcoin surged roughly $4,700 in just eight hours, climbing from $68,000 to above $72,000. The move wiped out around $400 million in short positions, as bearish bets were forced to close.
The world’s largest cryptocurrency jumped as much as 5-7% to $72,738, a three-week high. Across the board, the crypto market added close to $150 billion in value in a single day.
Stocks Join the Move
Equity futures followed the same script.
- Nasdaq futures rose over 3%
- S&P 500 futures gained around 2%
- Dow futures climbed close to 2.2%
Not Everyone Is Convinced
With Bitcoin testing range highs following the roughly 7% news-driven pump, experts are now waiting for a confirmed daily close above resistance. A breakout could open a path toward $76,000.
However, analysts warn that news-driven pumps of this kind tend to retrace quickly, and an unfilled CME gap at $67,100 below current prices keeps a bearish scenario in play. The next 24–48 hours are considered a critical decision point.
Related: Iran War Explained: Strategic Motives, Economic Winners, and Crypto Market Risks
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Source: https://coinedition.com/bitcoin-hits-three-week-high-oil-slides-as-us-iran-ceasefire-eases-market-fears/
