- Bitcoin and top altcoins like Zcash, Pepe Coin, and Sui jumped by double digits.
- The US and Iran reached a temporary two-week ceasefire.
- The terms of negotiations may derail the crypto bull run.
It was a sea of green in the crypto market as Bitcoin and top altcoins staged a comeback after the new ceasefire between the United States and Iran. Zcash price soared by 30% over the last 24 hours, reaching its highest level since February 16 this year.
Crypto Market Rallies After US-Iran Ceasefire
The SUI token price rose by 12% to $0.95, its highest level since March 26th. Pepe Coin jumped by 10%, while tokens like LayerZero, edgeX, Monad, and Bittensor were up by over 12%.
CoinMarketCap data shows that the market capitalization of all tokens in the crypto industry jumped by over 3.6% to over $2.4 trillion. Similarly, the volume of all tokens rose by over 23% to $112 billion.
More data shows that futures open interest jumped by 7.3% to over $112 billion, with Bitcoin’s open interest rising to over $51 billion.
The crypto market rally happened as investors embraced a risk-on sentiment after Donald Trump capitulated and ended his threats to bomb Iran’s critical infrastructure, like bridges and power plants.
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In a statement, Trump said that there will be a two-week ceasefire between the US and Iran. Similarly, Iran’s Abbas Aragchi said that the Strait of Hormuz will be reopened under the coordination of its military.
As a result, crude oil prices plunged by over 25%, with Brent and the West Texas Intermediate (WTI) falling to below $95. The stock market also rebounded, while the US dollar plunged.
Without a ceasefire, Trump was planning to bomb Iran’s infrastructure, a move that would have led to thousands of deaths in the country. It would also have led to retaliation by Iran, which identified key targets in the Middle East, including power plants and oil fields.
Such a move would have pushed crude oil prices to as high as $200 a barrel and made it hard for top central banks, including the Federal Reserve, to slash interest rates.
Potential Risks to a Crypto Bull Run
Still, there are risks that the ceasefire may not hold, especially because Israel’s goal is to keep fighting and destroy the country’s infrastructure. For example, just recently, Israel executed a senior Iranian official who was talking to the US.
The other main risk is that the gap between the United States and Iran is still wide, meaning that the war may resume in the next two weeks.
For example, Iran has issued a list of ten demands, including the end of Israel’s fighting with Hezbollah, compensation for the damage, a solid commitment not to attack from the US and Israel, the end of sanctions, and management of the Strait of Hormuz in coordination with Oman.
The US, on the other hand, has placed maximalistic demands on Iran, including limiting the number and range of ballistic missiles, ending support for proxy groups, ending strikes on regional countries, and a complete end to its nuclear program.
All these demands will be hard to overcome, potentially prolonging the crisis and derailing the crypto bull run.
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