After Iran-Israel Ceasefire Announcement, Crypto Market Strengthens: Will Bitcoin Reach New ATH?

The crypto market has been on a wild ride, with recent geopolitical events sending shockwaves through digital assets. On June 24, 2025, U.S. President Donald Trump announced a ceasefire between Iran and Israel, ending a tense 12-day conflict that had rattled global markets. 

This news sparked an immediate rebound in cryptocurrencies, with Bitcoin climbing back above $105,000 and other major coins like Ethereum, Solana, and XRP posting strong gains. But with the ceasefire still fragile, can this bullish momentum push Bitcoin to a new all-time high (ATH)? Let’s dive into what’s driving this rally and what it means for the crypto market’s future.

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The Ceasefire That Changed the Game

On Monday evening, June 23, 2025, President Trump took to Truth Social to declare a “complete and total ceasefire” between Israel and Iran, signaling the end of a 12-day conflict that had escalated tensions in the Middle East. The ceasefire, brokered with the help of Qatari and U.S. diplomatic channels, began with a 24-hour phased approach: Iran would pause hostilities first, followed by Israel, culminating in an official end to the conflict.

By Tuesday morning, Trump confirmed the ceasefire was in effect, urging both nations to honor the truce.This announcement brought a sigh of relief to global markets, which had been on edge due to fears of a broader war and disruptions to oil trade routes, particularly the Strait of Hormuz.

Read more: Iran’s Top Crypto Exchange Suffers Major Hack, Millions Lost

Crypto Market’s Rapid Recovery

Following Trump’s ceasefire announcement, Bitcoin surged by over 5%, climbing from $104,000 to $106,000 by Tuesday afternoon, June 24, 2025, according to Binance. This rebound erased much of the weekend’s losses, when BTC briefly fell to $98,615 amid fears of a prolonged conflict.

David Siemer, CEO of Wave Digital Assets, noted, “We’re seeing Bitcoin surge back to $105,000 and other major currencies like Ethereum, Solana, and XRP showing strong rallies of their own. This is largely due to easing tensions in the Middle East after the U.S.-brokered ceasefire.”

Altcoins Join the Rally

The broader crypto market also felt the positive vibes. Ethereum (ETH) jumped 9% to $2,420, recovering from a low of $2,191 earlier in the week. Solana (SOL) gained 7%, reaching $144.14, while XRP surged 7.8% to $2.18. Other altcoins like Sui (SUI), Chainlink (LINK), and Avalanche (AVAX) posted double-digit gains, with Sui leading at 11.8%. 

The total crypto market cap grew by 3%, rising from $3.19 trillion to $3.27 trillion in just 24 hours, showcasing the market’s rapid response to geopolitical relief. The Crypto Fear & Greed Index, a gauge of market sentiment, jumped 18 points to 65, signaling a shift back to “Greed” territory. This indicates traders are regaining confidence, though some caution remains due to the ceasefire’s fragility.

Why the Ceasefire Matters for Crypto

Cryptocurrencies are highly sensitive to global events, especially those impacting energy markets and economic stability. The threat of a Strait of Hormuz shutdown, which handles 25% of global oil shipments, had fueled fears of soaring oil prices and inflation. 

The ceasefire news calmed these concerns, with oil prices dipping below $70 per barrel, reducing inflation pressure and encouraging investors to return to riskier assets like crypto.

Read more: Crypto Market Surges as Trump Brokers Ceasefire Between Iran and Israel

Market Volatility and Liquidations

Despite the rally, volatility remains high. CoinGlass data shows $491 million in crypto positions were liquidated in the 24 hours following the ceasefire announcement, with $376 million in short positions wiped out as prices surged. Bitcoin and Ethereum accounted for the largest shares, at $161 million and $140 million, respectively. 

Challenges and Uncertainties Ahead

Reports surfaced on June 24 that Iran may have violated the truce, prompting Israel to resume “high-intensity operations” targeting Tehran’s assets. Iran denied these claims, but the news triggered $500 million in crypto liquidations as some investors dumped risk assets.

Analysts warn that any renewed escalation could reverse the gains. “Markets may continue to be reactive over the next few weeks,” Siemer cautioned. “Institutional players in the digital asset space are closely watching developments and assessing their risk appetite.”

Broader Market Dynamics

On-chain data shows whale accumulation, with one wallet scooping up 47,070 ETH during the dip, indicating confidence in long-term growth.

Analyst Cas Abbé predicts Bitcoin could hit $130,000–$135,000 by Q3 2025, while Bitget CEO Gracy Chen forecasts a range of $126,000–$190,000 this year. These bullish projections hinge on sustained geopolitical stability and favorable macroeconomic conditions.

Read more: Looking at the US Stock Market After Trump's Iran Missile: An Analysis

Can Bitcoin Reach a New ATH?

The Road to $112,000

Bitcoin’s previous ATH was $111,970, set on May 22, 2025. With BTC now trading around $105,800. The rally in altcoins and the broader market cap suggests growing momentum, but Bitcoin’s ability to break its previous peak depends on several factors:

• Ceasefire Stability: A lasting truce is critical to maintaining investor confidence.

• Oil Prices: Continued declines in oil prices could reduce inflation fears, supporting risk assets.

• Institutional Interest: Spot Bitcoin ETFs saw $1.37 billion in inflows for the week ending June 20, signaling strong institutional backing.

• Market Sentiment: The Crypto Fear & Greed Index and on-chain metrics like the Relative Strength Index (RSI) at 58 indicate room for further gains without overheating.

Risks to Watch

A breach of the ceasefire could send Bitcoin back below $100,000, with $1.74 billion in long positions at risk if it does. Additionally, external factors like inflation, interest rates, and regulatory developments could impact the market. For now, traders are advised to stay vigilant and manage risks carefully.

Conclusion

Crypto market rebounds after Trump’s Iran-Israel ceasefire announcement. Bitcoin hits $106,000, with Ethereum, Solana, and XRP gaining. Optimism grows, but the fragile truce and volatility urge caution. A new Bitcoin ATH above $111,970 is possible if stability holds. Watch global events closely. 

FAQ

Q1: Why did Bitcoin pump after the Iran-Israel ceasefire?

A1: The ceasefire eased global tension, dropped oil prices, and boosted risk appetite, pushing Bitcoin and altcoins into recovery mode fast.

Q2: Can Bitcoin break its $111,970 ATH soon?

A2: Yes, if the truce holds, oil stays low, and ETF inflows keep rising, BTC could hit $112K+, but one flare-up could crash the rally.

Q3: What key metrics are signaling bullish momentum?

A3: Whale ETH buys, $1.37B ETF inflows, and a Fear & Greed score of 65 show growing confidence, plus RSI at 58 means room to run.

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