The global cryptocurrency market rebounded sharply on June 24, 2025, after U.S. President Donald Trump announced a potential ceasefire agreement between Israel and Iran.

Though unconfirmed by Israeli authorities and marred by renewed missile launches from Iran, these news prompted a positive reaction across digital asset markets that had been shaken by regional conflict days earlier.

Market Rebounds After Weekend Sell-Off

The crypto sector had been under pressure following U.S. airstrikes on Iranian nuclear facilities, which triggered fears of prolonged conflict in the Middle East.

These events wiped nearly $40 billion off the total market capitalization and caused nearly $1 billion in liquidations. Bitcoin briefly fell to $98,615, while Ethereum and Solana recorded losses up to 10%.

However, the announcement of a possible ceasefire sparked a strong rebound. Bitcoin rose 3.3% to reach $105,400, Ethereum jumped 6,5% to $2,415, and Solana and XRP followed with gains of 7,8% and 8,1% respectively.

The market capitalization increased by 2.4% to $3.35 trillion, and investor sentiment improved significantly, as evidenced by a spike in the Crypto Fear & Greed Index from 47 to 65.

Sentiment Strengthens but Geopolitical Risks Remain

Alongside price gains, technical indicators show renewed strength. The average market-wide relative strength index climbed to 58, signaling a shift toward neutral sentiment.

Open interest rose by 4% to $135 billion, while total liquidations dropped 24% from the previous day, suggesting reduced panic selling and a return of stability.

Still, the situation remains fragile. Although President Trump cited coordination with Israeli and Qatari officials in brokering the truce, Iran has yet to fully confirm a cessation of hostilities.

Early Tuesday reports of fresh Iranian missile activity cast doubt on the ceasefire’s sustainability, tempering market enthusiasm with a dose of caution.

Traditional and Crypto Markets React Positively—for Now

The optimism extended to traditional markets, with S&P 500 futures rising by 0.4% and oil prices easing from recent highs. Crypto investors appear to be pricing in a temporary de-escalation, though many remain watchful for further geopolitical developments.

Whether the market can maintain its upward momentum depends heavily on the durability of the truce. Any renewed hostilities or conflicting signals from the involved nations could quickly reverse sentiment. For now, traders are cautiously optimistic, awaiting more concrete diplomatic outcomes.

Read Also: Ethereum Price Bounces Back, Market Eyes Next Move