Crypto Market Surges as Middle East Tensions Ease
The global crypto market rallied strongly on Tuesday, buoyed by signs of de-escalation in the Middle East conflict. Bitcoin, the leading cryptocurrency, jumped 5.3%,surpassing $105,000. The total market cap saw a rise of 5.19%, with Ethereum (ETH) leading altcoins by surging 11.33%. Other altcoins such as XRP, Solana, and Cardano also notched up significant gains.
Memecoins like Dogecoin and Shiba Inu were among the day’s top performers. This upswing is highly likely tied to growing optimism that regional tensions are easing. A ceasefire announced by U.S. President Trump was a key factor, with Iran and Israel agreeing to halt hostilities.
the ceasefire was brokered after U.S. bombers struck Iranian nuclear facilities,while Iran responded with cautionary strikes on U.S. bases in Qatar, allowing time for evacuations. This played a crucial role in soothing market jitters and lowering the risk of a full-scale war.
High tensions had pushed oil prices up, raising global inflation fears. A prolonged conflict could have forced central banks to hike interest rates, negatively impacting risk assets like cryptocurrencies. With the ceasefire in place, traders feel more confident, perhaps leading to a risk-on approach.
Even though the ceasefire remains fragile, the immediate risk of escalation has lessened. Expectations now include the GENIUS Act, which could establish a regulatory framework for stablecoins in the U.S. Institutions might also continue investing in Bitcoin, driving further growth.
