ILLINOIS — Bitcoin surged to $105,280 on Tuesday, fueled by a sudden improvement in global investor confidence following a short-lived ceasefire between Israel and Iran, brokered by former President Donald Trump. Although the truce unraveled within hours, the initial announcement was enough to boost crypto and equity markets alike.
Trump-Brokered Ceasefire Ends Abruptly
The market rally followed Trump’s announcement of a ceasefire at 1:00 a.m. ET. While Tehran and Jerusalem initially acknowledged the truce, hostilities resumed within hours, undermining its stability. The escalation included reported Iranian missile launches and retaliatory Israeli strikes, as noted in coverage by Investing.com.
Trump criticized both nations publicly, stating he was “not happy” with their actions. He urged restraint on social media, warning against further violations. White House officials said he also spoke directly with Israeli Prime Minister Benjamin Netanyahu to stress compliance.
Crypto Market Rebounds on Risk Appetite
Despite the short truce, investor sentiment shifted. Bitcoin jumped 2.6%, while broader crypto assets saw similar gains. Ethereum rose 5.5% to $2,422, and XRP climbed over 7% to $2.17. Meme tokens like Dogecoin and $TRUMP also advanced nearly 5% each.
Markets interpreted even a temporary pause in Middle East conflict as a sign of possible de-escalation. This lifted equities, with the S&P 500 gaining 0.7%, and Brent crude oil prices dropping 4.5% to $68.32 per barrel.
Political Fallout and Crypto Regulation Push
In parallel, Democratic Senator Adam Schiff introduced the COIN Act (Curbing Officials’ Income and Nondisclosure), which would bar federal officials, including the president and members of Congress, from investing in or promoting crypto assets. Schiff singled out Trump, accusing him of using office power to enrich himself via crypto-related schemes.
The proposal intensified ongoing debates about political entanglements in the digital asset space, especially as Trump continues advocating for pro-crypto policy shifts.
Ark Invest Cashes Out on Circle Rally
Meanwhile, Cathie Wood’s Ark Invest sold $109.6 million worth of Circle (CRCL) shares, which had soared post-IPO. The sale included 415,844 shares spread across ARKK, ARKW, and ARKF ETFs. Circle stock had closed 9.6% higher before slightly retreating the next morning.
Altcoin Momentum Mirrors Bitcoin Optimism
Other altcoins tracked Bitcoin’s lead. Solana and Cardano each rose by 5.5%, reflecting renewed optimism in the crypto sector. The surge comes despite lingering geopolitical risk and regulatory uncertainty.
Markets appear to be banking on temporary stability in the Middle East, even if only short-lived, to sustain asset momentum into July.
Do you believe crypto markets should be this sensitive to global political events? Let us know your thoughts on ChicagoSuburbanFamily.com.
