A sudden shift in tensions in the Middle East sent shockwaves through global markets, pushing Bitcoin to its highest level in more than two months, as traders reacted to signs of a possible detente between the United States and Iran.
Singapore Summit: Meet the top APAC brokers you know (and those you don’t know yet!)
The total market value of cryptocurrencies rose to about $2.61 trillion, an increase of 3.16% over the past 24 hours, according to CoinMarketCap. Bitcoin rose nearly 3% on the day and 6% on the week, while Ethereum added about 4% daily and 8% weekly, fueling the risk-on shift in major currencies.
XRP advanced about 3% in 24 hours and 9% over seven days, and Solana posted a more moderate daily rise of 0.86% and a weekly gain of 5%, showing that the rally was broad-based but still led by the largest assets.
Geopolitical shift drives market reactions
US President Donald Trump said that Iran had agreed to reopen the Strait of Hormuz, a major oil shipping route that had been blocked for weeks. Iranian officials later confirmed the move. Trump added that the two sides will cooperate to remove sea mines from the region, signaling a step toward stabilizing regional trade flows.
He also pointed to broader progress in the negotiations. According to Trump, the United States and Iran will work together to recover Iranian enriched uranium, which will be transferred to the United States. He said the broader peace agreement involving Iran, the United States and Israel is “mostly complete,” with additional talks expected soon.
Trump also claimed that Iran has agreed to suspend its nuclear program indefinitely and will not regain access to frozen funds held by the United States.
Volatility returns across assets
The geopolitical update has not only affected cryptocurrencies. This has led to volatility in global financial markets, as traders recalibrate risks after weeks of uncertainty linked to the conflict in the Middle East.
Continue reading: How far can Bitcoin go? eToro CEO, Yoni Asia, Targets Bitcoin Price Prediction at $250,000
The reopening of the Strait of Hormuz has implications beyond digital assets. This indicates potential stability in energy supply routes, which often influences inflation expectations and broader risk appetite.
Oil prices reacted equally to the new development. Current benchmarks show WTI trading at $83.23, down about 12.1% on the day, while Brent is at $90.89, down about 8.6% in the same period.
In OilPrice.com’s real-time feed, front-month WTI is trading at $93.53, up 2.45% during the session, and Brent is at $98.18, up 3.42%, highlighting the intraday volatility around Hormuz headlines depending on which sign they are based on.
This article was written by Jared Kirroy at www.financemagnates.com.
Source link
