Crypto Market Gives Back the Ceasefire Rally: What Happens Next Depends on 3 Developments

Key Takeaways

• Total crypto market gained over 3% Wednesday on ceasefire news.
• Iran named three ceasefire violations within the first 24 hours.
• Bitcoin is down 1.02% with altcoins off 3% to 5.5%.
• Strait of Hormuz remains effectively closed with zero merchant ships transiting.
• Islamabad talks still scheduled Saturday but Iran calls further negotiations “unreasonable”.

Wednesday’s ceasefire announcement between the US and Iran sent the total crypto market cap up more than 3% in a single session. Almost everything was green. Bitcoin pushed above $71,000. Ethereum touched $2,280. Altcoins that had been bleeding for weeks recovered sharply as the prospect of a de-escalating Middle East and a reopened Strait of Hormuz gave traders a reason to buy.

By Thursday morning, Iran had accused the United States and Israel of breaking the agreement within 24 hours of signing it. The gains ...