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The cryptocurrency market experienced a significant rally on Tuesday, June 24, following U.S. President Donald Trump's announcement of a truce between Israel and Iran.
Markets responded swiftly to the geopolitical development, with the global cryptocurrency market capitalization increasing 2.4% to $3.35 trillion. Bitcoin climbed to $106,000, while Ethereum surged 7% to $2,450. Solana and XRP also posted strong gains of 7% and 6%, respectively.
Markets Recover
The Fear and Greed Index jumped to 48, returning to "Neutral" territory. Market indicators showed improving sentiment, with the average relative strength index rising to 58 and open interest increasing 4% to $135 billion. Total liquidations dropped 24% to $481 million.
Just three days earlier, U.S. airstrikes on Iranian nuclear sites had triggered market fears, causing Bitcoin to fall nearly 4% to $98,615 and leading to nearly $1 billion in crypto long-liquidations. The potential ceasefire, reportedly brokered through Qatari and U.S. diplomatic channels, provided immediate relief.
Trump claimed the agreement was coordinated with Israeli Prime Minister Benjamin Netanyahu, though Iranian officials have only suggested a willingness to pause attacks conditional on Israel's restraint. Neither party has officially confirmed a full ceasefire.
Traditional markets also responded positively, with SP 500 futures increasing 0.4% and oil prices retreating from recent highs. However, traders remain cautious, recognizing that geopolitical risks persist.
Looking Ahead: The rally's sustainability depends on whether the tentative truce holds in the coming days. Crypto markets are currently pricing in de-escalation, but investors remain vigilant for any new developments that could impact market sentiment.
