Bitcoin reached a peak of $72,379 on Wednesday morning before settling around $71,610, representing a 3.5% gain over the prior 24 hours, according to CoinGecko data. The rally followed President Trump‘s announcement of a conditional two-week ceasefire with Iran, which lifted financial markets broadly. The surge liquidated $425 million in short crypto positions, with long liquidations contributing an additional $170 million, per CoinGlass data. Altcoins including Zcash, LayerZero, and Ethena posted double-digit gains on the news.
Traditional markets also responded positively. The S&P 500 rose more than 3.6% to $6,838, approaching but remaining below its all-time high of $7,043. Similar upward moves were recorded in Japan’s Nikkei and South Korea’s KOSPI indices. U.S. oil moved in the opposite direction, falling over 22% from above $117 per barrel to $91.
Trump outlined the terms of the ceasefire in a post on TruthSocial, stating that following conversations with Pakistani leadership, he agreed to suspend military action against Iran for two weeks, provided Iran agrees to the complete, immediate, and safe opening of the Strait of Hormuz. The arrangement also allows Iran and Oman to collect fees on ships passing through the strait, with proceeds directed toward reconstruction efforts. Critics labeled the deal another instance of what they call “TACO”—”Trump Always Chickens Out”—pointing to the president’s earlier warnings that “a whole civilization will die tonight” unless Iran reopened the waterway.
Industry observers offered measured assessments of the ceasefire’s implications for crypto markets. Maksym Sakharov, co-founder and CEO of on-chain banking infrastructure provider WeFi, told Decrypt that the pause opens the door for broader global crypto adoption, particularly for stablecoins, and could fuel a sharp market-wide rise. Andri Fauzan Adziima, research lead at cryptocurrency exchange Bitrue, described the ceasefire as providing “fragile breathing room” after weeks of escalation, while noting that skepticism remains high over whether it will hold. He added that detractors argue the deal erodes U.S. credibility by converting hardline rhetoric into short-term concessions.
Adziima also noted that the move mirrors past patterns in U.S. trade and foreign policy, offering immediate relief while leaving underlying issues unresolved. Notably, the ceasefire does not extend to Lebanon, where Israeli air strikes have continued. Justin d’Anethan, head of research at crypto research firm Arctic Digital, told Decrypt that despite signals hinting at a potential breakout, broader risk-off sentiment continues to temper enthusiasm. He suggested that long-term investors may look back on current price levels as a favorable entry point, adding that attention remains fixed on developments in the Strait of Hormuz.
Sentiment on prediction market Myriad has shifted noticeably since the ceasefire announcement. Users now assign a 55% probability to Bitcoin rallying to $84,000, up from 43% before the news. The likelihood that average ship traffic through the Strait of Hormuz will return above 15 vessels before May is now priced at 88%, compared to 65% the previous day. These figures reflect cautious optimism rather than outright confidence in a sustained recovery.
On the regulatory front, the Federal Deposit Insurance Corporation approved a proposal on Tuesday to implement requirements and standards under the GENIUS Act. Sakharov noted that the new rules require stablecoins to maintain a 1:1 backing with hard cash, which he said would increase trust and drive adoption. He also cautioned that upcoming U.S. Consumer Price Index data could complicate the outlook, as a higher-than-expected reading might delay potential rate cuts and weigh on economic growth. Bitcoin’s near-term trajectory remains contingent on whether the ceasefire holds and how key macroeconomic indicators develop in the coming weeks.
Originally reported by Decrypt.
