Crypto Market Rises as US and Iran Discuss 45-Day Ceasefire Amid Strait Tensions

Reports of a potential 45-day ceasefire between the United States and Iran helped lift crypto markets, pushing total market capitalization up by about $70 billion, or 2.5%, to $2.44 trillion, marking an 11-day high in early Monday trading.

Bitcoin briefly climbed to $69,500 , reflecting improved sentiment following remarks by Donald Trump. Trump warned that Iran would face severe consequences if the Strait of Hormuz remained closed but also stated that negotiations were underway with a “good chance” of reaching a deal within 24 hours.

Oil Prices Surge as Conflict Drives Economic Concerns

The conflict, now lasting more than a month, has driven crude oil prices to around $106 per barrel, raising fears of inflation and economic slowdown. Analysts estimate sustained high oil prices could push Consumer Price Index inflation to around 3.7% if current levels continue for seven weeks.

Short term market volatility has also increased, with approximately $255 million in liquidations recorded over 24 hours, 73% of which were short positions. Reports indicate that earlier deadlines required Iran to reopen the Strait within 10 days, later extended to Tuesday, while discussions involving regional mediators continue to explore ceasefire conditions that could ease global market tensions.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.