The cryptocurrency market rallied on Tuesday, June 24, following news of a potential truce between Israel and Iran, announced by U.S. President Donald Trump. 

According to a June 24 report by Reuters, Trump said both countries had agreed to end hostilities after a 12-day conflict, though Israel has yet to confirm the agreement, and missiles were reportedly launched from Iran early Tuesday. 

Markets reacted swiftly. After suffering losses over the weekend due to concerns about a wider conflict in the Middle East, the global cryptocurrency market capitalization increased 2.4% to $3.35 trillion. Bitcoin (BTC) climbed 3.7% to $105,000, while Ethereum (ETH) surged 7% to $2,396. Solana (SOL) and XRP (XRP) also posted strong gains of 7% and 6%, respectively.

Alternative’s Crypto Fear & Greed Index jumped 18 points to 65, marking a return to “Greed” territory. Other market indicators suggest improving sentiment. Data from Coinglass shows the average relative strength index across the market rose to 58, a neutral level. Open interest rose by 4% to $135 billion, while total liquidations dropped to $481 million, down 24% from the previous day.

Markets had turned lower just two days earlier when U.S. airstrikes on Iranian nuclear sites sparked fears of prolonged conflict and economic disruption. Bitcoin fell nearly 4% to $98,615 at the time, with Ethereum and Solana dropping up to 10%. The attack also led to nearly $1 billion in crypto long-liquidations and a $40 billion loss in total market capitalization.

Traders now appear cautiously optimistic. Trump claimed the ceasefire was brokered in coordination with Israeli Prime Minister Benjamin Netanyahu and mediated through Qatari and U.S. diplomatic channels. While Iranian officials suggested a willingness to pause attacks if Israel halted further aggression, they stopped short of a full commitment.

In traditional markets, the ceasefire news also boosted sentiment. After-hours trading saw a 0.4% increase in S&P 500 futures, while oil prices fell from recent highs as concerns about disruptions to Gulf shipping routes subsided.

Crypto markets seem to be pricing in a de-escalation for the time being, but traders are still on the lookout for any new developments. The rally might depend on whether the ceasefire holds in the days ahead, as geopolitical risk is still high and neither party has officially confirmed a ceasefire.