Bitcoin crossed the $72,000 mark for the first time in 20 days on Tuesday following a ceasefire agreement between the United States and Iran. The cryptocurrency reached $72,339 in the hour after the announcement, according to CoinMarketCap. The move represented a 2.6% gain within that period. The last time Bitcoin had traded at this level was March 18.
Donald Trump announced the truce in a post on Truth Social, stating he agreed to suspend bombing and attacks on Iran for a two-week period. The announcement came just hours before a deadline Trump had set for Iran to reopen the Strait of Hormuz, with threats of military strikes on key infrastructure if the deadline was not met. Iran’s Supreme National Security Council confirmed it had accepted the ceasefire terms.
The agreement followed a period of sharp rhetoric from Trump. In a post on Monday, he warned that “a whole civilization will die tonight, never to be brought back again,” while adding he did not want that outcome to occur. The ceasefire announcement marked a notable shift in tone within a matter of hours. The rapid de-escalation appeared to catch markets off guard, triggering a swift response in crypto prices.
Crypto traders have historically treated geopolitical instability as a negative force on prices, with any signs of tension easing often prompting quick relief rallies. Tuesday’s price movement appeared consistent with that pattern. The broader crypto market had been under pressure in recent weeks, with sentiment remaining subdued heading into the announcement.
The Crypto Fear & Greed Index, a measure of overall sentiment across the crypto market, recorded an “Extreme Fear” score of 11 on Tuesday. This reading signals that investors were approaching the market with significant caution. Such low scores typically reflect widespread uncertainty and risk aversion among participants. The index underscores how fragile market confidence had become prior to the ceasefire news.
Earlier in April, Trump stated that the US military campaign in Iran could conclude within weeks, claiming the objective of eliminating Iran’s nuclear capabilities had been accomplished. That statement, made on April 1, suggested the conflict was entering a potential wind-down phase. The two-week ceasefire announced Tuesday appears to be a step in that direction, though the longer-term outcome of negotiations between the two countries remains to be seen.
Originally reported by CoinTelegraph.
