Crypto Market Up Today, What's the Reason? Here's the Explanation

The global crypto market witnessed a strong upward movement today, lifting investors’ confidence after weeks of uncertainty. On Tuesday, June 24, the price of Bitcoin surged past the $105,000 mark, marking a 5.3% increase within a single day. 

Ethereum followed suit with an 11.33% jump, and many altcoins recorded similar or even higher gains. This unexpected bullish turn has left many wondering, what exactly is behind the rally? Read more in this article. 

Tensions Ease in the Middle East: A Key Catalyst

One of the clearest triggers for the crypto market rally today is the apparent de-escalation of conflict in the Middle East. 

The long-standing geopolitical strain between Iran and Israel reached a turning point when U.S. President Donald Trump announced that both nations had agreed to a ceasefire. 

This announcement came after a tense period involving airstrikes and threats, including Iran’s earlier signal to close the Strait of Hormuz, a vital passage for 20% of the world’s oil supply.

According to reports, the U.S. had targeted Iranian nuclear sites, but Iran’s response was limited and calculated. They struck U.S. bases in Qatar but reportedly gave prior warnings to prevent casualties and avoid further escalation. 

This approach was interpreted by markets as a sign that both sides might be trying to avoid a broader war.

Read also: FOMC Meeting Forecast: Can Crypto Keep Its Rebound Going?

Why This Matters to Crypto Investors

The crypto market today is particularly sensitive to geopolitical developments. War and instability, especially in oil-rich regions, often raise fears of inflation and disrupt global markets. 

If conflicts like the Iran vs Israel war worsen, energy prices spike, which leads central banks to raise interest rates. This, in turn, puts pressure on risk assets, including cryptocurrencies.

The current ceasefire has temporarily removed that threat. Investors, especially institutional ones, are once again showing a willingness to take risks. 

The return of capital to digital assets like Bitcoin and Ethereum suggests growing confidence that the global financial environment may stabilize, at least for now.

Altcoins and Memecoins Join the Rally

The graphic from Coinmarketcap shows a rise in crypto market capitalization of around 0.4%. (Source: Coinmarketcap)

It wasn’t just Bitcoin and Ethereum that performed well. A wide range of altcoins followed with significant gains. XRP rose by 10.15%, Solana by 9.61%, and Cardano by 9.4%. 

Even popular memecoins like Dogecoin and Shiba Inu approached double-digit gains, reflecting the broader positive sentiment in the crypto market today.

One notable standout was Sei (SEI), which surged by more than 35%, setting a new monthly high. Its performance indicates that in a bullish environment, even lesser-known tokens can capture investor attention and momentum.

A Fragile Optimism

Despite the optimism in today’s crypto condition, experts warn that the situation remains fragile. Soon after the ceasefire announcement, there were reports of renewed Israeli airstrikes. 

However, these did not escalate further, and U.S. diplomatic pressure appears to have had an effect. While the current risks are lower than two weeks ago, the potential for renewed conflict remains.

This means that while markets are optimistic, the rally could reverse if tensions rise again. Investors are advised to stay cautious and monitor global developments closely.

Read also: Is the Crypto Market Recovering?

Future Drivers of the Crypto Market

Aside from geopolitical relief, there are other factors that could influence the crypto market in the coming weeks. 

One is the upcoming GENIUS Act in the U.S., which proposes a formal regulatory framework for stablecoins. If passed, it could provide more clarity and legal structure for crypto-related businesses and investments.

There is also growing interest from institutions in adding Bitcoin to their balance sheets. Companies like Méliuz in Brazil continue to see value in holding crypto, reinforcing Bitcoin’s role as a legitimate store of value.

On the other hand, legal issues within the crypto space, like the recent conviction of Veer Chetal for stealing $245 million in Bitcoin, remind us that the industry still faces major trust and security challenges.

What’s Next for Bitcoin and Ethereum?

Analysts suggest that Bitcoin needs to stay above the $105,000 level to maintain its bullish momentum. If it breaks the next resistance levels at $105,622 and $108,000, it could open the door for further growth. 

Ethereum, with its strong double-digit gains, also looks poised to extend its rally if positive sentiment continues.

The next few weeks will be critical. Traders and investors will watch whether the current recovery develops into a sustained bullish cycle or fades due to renewed risks.

Find other interesting articles on Bitrue blog! You can also directly buy selected assets on Bitrue by registering here! 

FAQ

Why is the crypto market up today?

The crypto market rose today due to easing geopolitical tensions, especially the announced ceasefire between Iran and Israel, which reduced global economic risks.

How did Bitcoin perform?

Bitcoin climbed over 5.3% to surpass $105,000, a strong recovery after recent losses driven by geopolitical fears.

What about Ethereum and other altcoins?

Ethereum surged by more than 11%. Altcoins like XRP, Solana, and Cardano also saw gains, with some memecoins nearing double-digit increases.

What does the Iran vs Israel war have to do with crypto?

Geopolitical conflicts impact global inflation and energy prices. Rising oil prices and war risks make investors pull out from riskier assets like crypto. The ceasefire eased those fears.

Will the crypto market continue to rise?

It depends on whether the ceasefire holds and whether upcoming regulations like the GENIUS Act bring more clarity to the industry. The next resistance levels for Bitcoin will be closely watched.