The cryptocurrency market has made a strong recovery following a ceasefire between Israel and Iran, announced by U.S. President Donald Trump. After briefly falling below $99,000 over the weekend, Bitcoin has rebounded by 3.5% today, currently trading above $105,500. The price level is nearly identical to where it stood before the recent geopolitical tensions intensified.
The ceasefire, confirmed late Monday via Trump’s Truth Social posts, appears to have eased investor concerns, contributing to a wider surge across digital assets. Traditional markets also reacted positively, with stock futures climbing and crude oil prices falling sharply.
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Broad Recovery Across Altcoins
While Bitcoin led the recovery, the strongest gains today were seen across the altcoin sector. Ethereum rose by nearly 8%, reclaiming the $2,400 level it had lost earlier during the downturn. BNB posted a 3% daily gain, while Solana and XRP each increased by more than 8%. Although these assets are still trading slightly lower on a weekly basis, they have regained a significant portion of their recent losses.
Most of the top 100 cryptocurrencies are showing gains today. According to market data, OKB is the only non-stablecoin in the top 100 trading in negative territory at the time of publication.
Double-Digit Gainers
A number of tokens posted double-digit gains, suggesting a strong wave of buying interest. SEI increased over 35%, SPX6900 rose 28%, and JasmyCoin climbed 24%. Other coins with notable gains include SUI, Chainlink, and Hedera.
While these gains are sharp, many of the tokens remain slightly below their pre-crash levels, indicating that the current movement is primarily a recovery from last week’s drop rather than a new rally.
Read also: SEI Gains After Wyoming Selects It for State Stablecoin Pilot
Other Contributing Factors
The ceasefire is seen as the main catalyst for the rebound, but other market dynamics may also be influencing price movements. Traders are increasingly pricing in the possibility of U.S. interest rate cuts, with the CME FedWatch Tool showing a 53.3% chance that rates could fall to 3.75% or lower by November. Lower interest rates typically benefit risk-on assets such as cryptocurrencies.
Institutional interest has also remained stable. Despite recent volatility, Bitcoin’s open interest in futures contracts remains near $68 billion. Data from CoinShares showed $1.24 billion in inflows to crypto investment funds last week, with $1.1 billion of that going into Bitcoin.
Short-Term Outlook
The sharp rebound in crypto markets reflects a return of short-term confidence, but the overall weekly trend still remains slightly negative for most altcoins. The current momentum is driven by a mix of geopolitical relief, shifting interest rate expectations, and continued institutional interest.
Whether the recovery continues or stalls will depend on the stability of the ceasefire and upcoming macroeconomic developments, including Federal Reserve Chair Jerome Powell’s testimony scheduled for Tuesday.
