Altcoin prices surged early Tuesday following U.S. President Donald Trump’s announcement of a ceasefire between Iran and Israel, marking a sharp recovery in the crypto market. Sui, Chainlink, and Avalanche led the gains, while Ethereum, Solana, XRP, and Bitcoin rebounded, effectively erasing losses sustained over the weekend due to escalating geopolitical tensions.
The announcement came as a relief after a weekend of turmoil that saw U.S. forces join Israeli strikes on Iranian nuclear facilities, sending crypto markets into a tailspin. Trump declared on Truth Social,
“THE CEASEFIRE IS NOW IN EFFECT. PLEASE DO NOT VIOLATE IT!”
However, the situation remains tense, with Israel accusing Iran of launching missiles shortly after the announcement and vowing retaliation. Iran denied these claims but warned of a firm response to any further aggression.
Altcoin Rally: A Temporary Respite?
For now, altcoins are enjoying a boost. Sui (SUI) surged 11.8% to $2.80, Chainlink (LINK) rose 9.7% to $13.04, and Avalanche (AVAX) climbed 5.6% to $18.04, according to CoinGecko data. Solana (SOL) increased by 7.4% to $144.14, while XRP (XRP) and Dogecoin (DOGE) also saw significant gains.
Market experts attribute the rally to the ceasefire announcement, highlighting the crypto market’s sensitivity to geopolitical events. Min Jung, an analyst at Presto Labs, noted,
“The sharp recovery occurred during early Asia hours, which aligns closely with the timing of the announcement.”
Annu Shekhawat, global ecosystem lead at Avail, added,
“This represents a textbook example of how quickly crypto markets respond to major geopolitical developments.”
Global Markets React
The ceasefire news also buoyed Asia-Pacific markets. South Korea’s Kospi surged 2.8%, Japan’s Nikkei 225 climbed 1.3%, and Hong Kong’s Hang Seng rose 1.8%. Meanwhile, Bitcoin (BTC) led the crypto recovery, surging 3.1% to over $105,000, nearly regaining its pre-weekend levels after falling below the crucial $100,000 mark on Sunday.
Ganesh Mahidhar, an investment professional at Further Ventures, predicted continued volatility.
“We will see a lot of the pairs fluctuate this week,”
he said, citing policy and liquidity drivers. He emphasized the importance of geopolitical stability in the short term, while long-term gains depend on factors like reduced inflation and increased stablecoin adoption.
Background: A Weekend of Escalation
The recent sequence of events began over the weekend when U.S. and Israeli forces targeted Iranian nuclear sites, prompting Iran to retaliate by striking the Al Udeid Air Base in Qatar. Although Qatari officials reported neutralizing all incoming missiles without casualties, the escalation heightened market anxieties until Trump’s ceasefire announcement.
Despite the current rally, experts caution that the ceasefire’s fragility could lead to further market fluctuations. As Ganesh Mahidhar noted, the interplay of geopolitical developments and market dynamics will continue to shape the crypto landscape.
Looking Ahead: Uncertain Times
The crypto market’s response to the ceasefire underscores its volatility amid geopolitical tensions. While the current rally provides a temporary respite, the long-term outlook remains clouded by uncertainties. As the situation between Iran and Israel evolves, market participants will closely watch for signs of stability or further escalation.
In the coming days, investors will likely focus on broader economic factors, such as inflation and interest rates, as well as the ongoing adoption of stablecoins, which could play a crucial role in determining the market’s trajectory. For now, the ceasefire offers a brief moment of relief in an otherwise turbulent landscape.
