Bitcoin and U.S. stock futures advanced Tuesday evening, while oil prices sharply declined, after Donald Trump announced a two-week ceasefire between the U.S. and Iran on Truth Social.
Bitcoin, the largest cryptocurrency by market capitalization, climbed 5% over the past 24 hours to reach an intraday high of $72,699. The broader crypto market followed, with the CoinDesk 20 Index rising 5% to 2,034. In traditional markets, futures linked to the S&P 500 gained 1.9%, Nasdaq Composite futures rose 2.2%, and Dow Jones Industrial Average futures increased roughly 1.8%.
Meanwhile, crude oil markets saw a steep sell-off. West Texas Intermediate fell more than 10% to $95 per barrel, with Brent Crude posting similar losses, as easing geopolitical tensions reduced supply concerns.
The rally in risk assets followed confirmation that the U.S. would pause a planned large-scale military campaign against Iran for two weeks. Trump said the decision reflected that key military objectives had already been achieved and that negotiations toward a longer-term peace agreement were progressing.
Iran also confirmed the ceasefire, stating it would halt defensive operations if attacks ceased. It added that oil tankers could resume transit through the Strait of Hormuz during the truce, subject to coordination with its armed forces and certain technical limitations.
Javier Blas noted that while the reopening of the Strait remains somewhat uncertain due to logistical constraints, the agreement effectively restores the flow of oil and LNG in the near term.
For much of the past month, escalating tensions tied to the Iran conflict had pressured risk assets. Bitcoin, in particular, traded in a volatile range, with gains capped by rising oil prices and inflation fears, leading many traders to build bearish positions in the futures market.
The latest move higher has triggered significant liquidations in crypto derivatives markets, with nearly $600 million in leveraged positions wiped out. More than $400 million of those were short positions, signaling a strong short squeeze that has added fuel to Bitcoin’s upward momentum as traders rushed to cover losses.
