Bitcoin and US equity futures surged on Tuesday evening, while oil prices saw a steep decline. The market movement was largely attributed to US President Donald Trump’s announcement of a two-week ceasefire with Iran, which he shared via Truth Social.
Positive reaction in cryptocurrencies and stock futures
Bitcoin rallied by 5 percent during the day to reach $72,699. This upward momentum was mirrored across the wider digital asset space, as the CoinDesk 20 Index rose 5 percent to 2,034 points. Stock market futures followed suit: S&P 500 futures gained 1.9 percent, Nasdaq futures were up 2.2 percent, and Dow Jones futures recorded an increase of nearly 1.8 percent.
Oil prices tumble as Middle East tensions ease
In contrast, oil prices experienced a sharp drop. West Texas Intermediate crude fell more than 10 percent, sliding to $95 per barrel, with Brent crude experiencing a similar decline. The swift reversal reflected investor relief after indications that a major military confrontation in the Middle East was at least temporarily off the table.
For the past several weeks, the prospect of a large-scale military action against Iran had weighed on market sentiment, increasing volatility in cryptocurrency markets and dampening risk appetite. With news of the postponed attack, investors pivoted back toward riskier assets, marking a renewed appetite for growth.
In his Truth Social post, Trump stated, “I have agreed to suspend bombings and attacks on Iran for two weeks. This will be a bilateral ceasefire. All military objectives so far have been achieved, and significant progress has been made toward a long-term peace agreement with Iran.”
Iranian officials confirmed their acceptance of the ceasefire. In their statement, they emphasized that “if attacks against Iran are halted, our armed forces will suspend defensive operations.” The same release noted that oil tankers passing through the Strait of Hormuz would be permitted safe passage for two weeks in coordination with Iranian forces, provided technical conditions are met.
Javier Bias, an analyst specializing in energy and commodities, commented on X (formerly Twitter) that both parties had confirmed the ceasefire but stressed that full reopening of the Strait of Hormuz would still depend on technical limitations and military coordination.
Uncertainty surrounding Iran had put sustained pressure on risk assets for nearly a month. During this period, Bitcoin traded sideways, its gains restrained by rising oil prices. The abrupt shift in market direction prompted many investors to reassess their strategies.
Amid the rapid rally over the past 24 hours, roughly $600 million in leveraged futures positions were liquidated on crypto exchanges. Of this amount, more than $400 million stemmed from short positions—bets placed by investors who had predicted falling prices.
These widespread short-covering liquidations fueled the upward momentum, reinforcing expectations for further gains. The move also highlighted a significant swing in investor sentiment back toward bullishness across the digital asset market.
