Crypto markets saw a resurgence in early Asian trading hours on June 24, following US President Donald Trump’s announcement of a ceasefire between Israel and Iran.
Trump took to Truth Social on June 24 to share the news, stating:
“CONGRATULATIONS TO EVERYONE! It has been fully agreed by and between Israel and Iran that there will be a Complete and Total CEASEFIRE.”
This unexpected development led to a reversal of losses in the crypto market, with major digital assets experiencing a rapid increase in value.
Bitcoin led the rebound, rising by 3% to surpass $105,000, after recently dropping below $100,000. Ethereum, Cardano, and Dogecoin also saw significant gains, climbing to $2,417, $0.58, and $0.16, respectively.
Solana and XRP stood out by outperforming the market, with both coins surging over 7%. Solana reached over $144, while XRP traded at $2.18 at the time of reporting.
The sudden price surge caught many short sellers off guard, resulting in over $370 million worth of short positions being liquidated across the crypto market.
Traders with short positions in Ethereum faced the largest losses, with liquidations exceeding $119 million. Short positions in altcoins like Solana, XRP, and Cardano also contributed to the total liquidation amount.
Market analysts emphasized the quick response of digital assets to geopolitical events.
Valentin Fournier, a lead analyst at BRN, highlighted how Trump’s ceasefire announcement swiftly impacted investor sentiment, even without formal confirmation from the involved countries.
While cautioning about the temporary nature of such truces, Fournier suggested that the market rebound indicated a potential decrease in fear levels and a chance for altcoins to see further growth if tensions remain under control.
He remarked:
“Our overweight on Solana paid off, as it outperformed both BTC and ETH, confirming its role as a high beta leader in recovery phases.”
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