Ether, Solana, Cardano Spike 7% as Trump Claims to Broker Israel-Iran Ceasefire
A temporary calm settled over risk assets Tuesday following a claim by former U.S. President Donald Trump of a brokered ceasefire between Israel and Iran. This announcement triggered a rally in major cryptocurrencies. Trump’s statement on Truth Social declared an impending ceasefire, with Iran initiating it, followed by Israel, culminating in a complete end to the twelve-day conflict.
This news spurred significant gains in Ether (ETH), Solana (SOL), and Cardano (ADA), each rising approximately 7% within 24 hours. Ether surpassed $2,400, while SOL and ADA climbed above their respective support levels of $140 and $0.50. Crypto trading volumes rebounded after a substantial weekend decline that saw nearly $600 million in liquidations. XRP, BNB, and Dogecoin also experienced increases ranging from 4% to 6%. The CoinDesk 20 (CD20) index, tracking leading cryptocurrencies, rose over 3%.
This upward trend coincided with broader macroeconomic relief. Brent crude oil prices decreased by 1.8%, and S&P 500 futures showed positive movement, despite the lack of official confirmation from either government regarding the ceasefire. Traders swiftly shifted back into altcoins, anticipating reduced volatility. Augustine Fan of SignalPlus noted an expectation of market normalization following the geopolitical event but expressed concern about a potential larger correction impacting recent long positions and the negative impact of public companies establishing Bitcoin treasuries.
Bitcoin (BTC) consolidated near $105,000, testing resistance levels as institutional inflows remained stable. Kay Lu, CEO of HashKey Eco Labs, highlighted the resilience of Bitcoin holding above $100,000 amidst geopolitical and macroeconomic volatility. She attributed this strength to institutional inflows and ETF demand, suggesting Bitcoin’s increasing role as a macro hedge. However, some traders anticipate profit-taking, particularly in assets like Ether, which experienced significant gains. The reported ceasefire and subsequent market reaction demonstrate the interconnectedness of geopolitical events and the cryptocurrency market’s dynamic response.
