Bitcoin and U.S. stock futures jumped Tuesday evening, while oil prices tumbled, after Donald Trump announced a two-week ceasefire between the U.S. and Iran via Truth Social.
Bitcoin rose 5% over the past 24 hours to reach an intraday high of $72,699. The broader crypto market followed suit, with the CoinDesk 20 Index gaining 5% to 2,034. In equities, futures tied to the S&P 500 climbed 1.9%, while Nasdaq Composite futures advanced 2.2%. Dow Jones Industrial Average futures were up around 1.8%.
Oil markets moved sharply lower. West Texas Intermediate dropped more than 10% to $95 per barrel, and Brent Crude posted similar declines, as easing geopolitical tensions reduced fears of supply disruptions.
The broad risk-on move followed Washington’s decision to pause a planned large-scale military campaign against Iran for two weeks. Trump said the move came after meeting key military objectives and amid progress toward a longer-term peace arrangement in the Middle East.
Iran confirmed the ceasefire, stating it would halt defensive operations if attacks ceased. It also indicated that oil tankers could resume transit through the Strait of Hormuz during the truce, subject to coordination with its military and certain technical limitations.
Javier Blas noted that while the reopening of the Strait remains somewhat uncertain, the agreement effectively restores the flow of oil and LNG in the near term.
For much of the past month, escalating tensions surrounding the Iran conflict had pressured risk assets. Bitcoin traded in a volatile range, with gains capped by rising oil prices and inflation concerns, leading traders to build bearish positions in futures markets.
The latest rally has triggered significant liquidations across crypto derivatives, with nearly $600 million in leveraged positions wiped out. More than $400 million of those were short bets, underscoring a strong short squeeze that has amplified upward momentum as traders rushed to cover losses.
