Bitcoin Surges to $106,000 on Middle East Ceasefire and Rate Cut Expectations

The cryptocurrency market rallied strongly after U.S. President Donald Trump made a surprise announcement of a comprehensive ceasefire between Israel and Iran, officially ending 12 days of intense conflict in the Middle East.

According to Trump, the ceasefire will be carried out in two 24-hour phases, with Iran initiating the proposal and Israel quickly agreeing. The announcement sparked an immediate and powerful reaction across global financial markets.

Markets Rebound Sharply

Previously, Bitcoin had dropped below $100,000 amid fears that Iran might blockade the Strait of Hormuz — a vital route that handles roughly 25% of the world’s crude oil shipments. However, following the ceasefire news, BTC rebounded swiftly, gaining more than 5% to reach $106,000.

Ethereum also joined the rally, soaring above $2,400 as investor sentiment improved and risk appetite returned across digital asset markets.

The ceasefire helped ease concerns about escalating military conflict and potential global energy supply disruptions. Earlier, Iran had attacked a U.S. military base in Qatar, and on the same day, Iran’s parliament approved a proposal to shut down the Strait of Hormuz — a move that could have sent oil prices soaring, fueled inflation, and forced central banks to delay interest rate cuts.

All Eyes on Hormuz

Investors are now closely watching whether both sides will fully honor the 24-hour ceasefire and whether the Strait of Hormuz will remain open to global shipping. If the situation stabilizes, financial markets — including stocks and cryptocurrencies — could gain further momentum.

Conversely, any violation or signs of renewed tensions could quickly drag Bitcoin back into high-risk territory and trigger another wave of sell-offs.