The recent announcement of a ceasefire between Iran and Israel acted as a catalyst for a significant rise in the crypto market. Leading cryptocurrencies, including Bitcoin, Ethereum, and XRP, saw appreciable gains despite market volatility.
The Trump Effect on Crypto Markets
On Monday evening, Donald Trump announced that 'Iran and Israel have fully agreed on a complete and total ceasefire.' This statement instantly propelled Bitcoin above $105,000, fully recovering losses sustained over the weekend. Investor reaction was immediate, with a nearly 5% gain occurring within hours.
Broad Market Gains
The crypto market as a whole benefited from this news. Ethereum gained 9% to reach $2,408, while Solana experienced an 11% rise, and Dogecoin increased by 10%. However, this rally was accompanied by increased volatility, leading to a total of $491 million in liquidated positions.
The Impact of Geopolitical Factors on Liquidity
Most of the liquidated positions were short, totaling $376 million, which indicates that bearish bets were wiped out by the upward surge. Bitcoin accounted for $161 million in liquidations, closely followed by Ethereum with $140 million. This situation illustrates the intensity of price movements and the difficulties in predicting trend reversals under tense geopolitical conditions.
Recent events emphasize the significance of geopolitical news on the crypto market. While this rise may seem promising, questions remain about its sustainability amid ongoing global uncertainty.
