Crypto Market Rally on US-Iran Peace Deal, Prices Shoot Over 3%

Key Insights:

• Risk-on sentiment in crypto market surged, sending Bitcoin above $65,000 and triggering $250 million in short liquidations.
• Analysts believe Bitcoin may have established a market bottom near $60,000 after successfully defending its 200-week moving average.
• Analyst expects capital to rotate from Bitcoin into stronger altcoins like ETH, SOL, HYPE, etc.

On June 14, US President Donald Trump announced a peace deal in the ongoing US-Iran war. That sent risk-on assets, including digital assets, higher.

Following the peace deal, the crypto market rallied, adding $60 billion to the overall market cap. Bitcoin (BTC), Ethereum (ETH), XRP, Dogecoin (DOGE), and others led the rally, with over 3% gains in the last 24 hours.

Crypto Market Adds $60 Billion On US-Iran Peace Deal

Soon after US President Donald Trump announced a peace deal, the crypto market added $60 billion in value. Trump also announced the reopening of the Strait of Hormuz to international shipping.

He said that the U.S. naval blockade had been lifted. The easing of geopolitical tensions and the opening of the Strait of Hormuz has pushed global markets higher.

Following the announcement, Bitcoin climbed back above the $65,000 level, while Ethereum reclaimed $1,700. The sharp rebound triggered nearly $250 million in short liquidations across the crypto market over the past 12 hours.

The top gainers of the day are Worldcoin (WLD), which jumped 20%, and ZCash (ZEC), up 15%. This happened as traders took bold bets with risk-ON sentiment again.

Furthermore, experts predicted that the declining crude oil price could be beneficial for risk assets, like equity and crypto. Moreover, lower energy prices may reduce inflationary pressures, thereby improving the overall macro backdrop in the coming months.

Is Bitcoin (BTC) Price Ready for the Uptrend?

Following the lows of $60,000 last week, the Bitcoin price has shown healthy signs of trend reversal. The technical chart patterns also show that BTC is holding firmly above the 200-week moving average (WMA). That’s a very strong support level.

As of now, the 200-WMA for Bitcoin stands at $64,511, and the price is comfortably trading above those levels.

Based on the 200-WMA support, Charles Schwab believes that the Bitcoin price may have established a market bottom. That’s near the $60,000 level. The $10 trillion asset management giant also pointed to historical bear market behavior.

The analysts noted that BTC has often found durable bottoms near long-term support levels before beginning new market cycles. Additionally, the asset manager cited Bitcoin miner production costs, currently estimated at around $16,000.

Crypto Market Rally: Can Altcoins See A 2020-Like Move?

Analyst Michael van de Poppe believes that a BTC price breakout above $64,000 could be a turning point for the crypto market. This could further ignite a strong rally across the altcoins market, he added.

Poppe said that a sustained move above $64,000 would likely restore risk appetite among investors. Thus, it would attract additional liquidity to the overall crypto market. He expects the strongest assets to continue outperforming as capital rotates into sectors already showing relative strength.

According to the analyst, a robust “altcoin summer” followed by a sharper correction in September or October remains a plausible scenario. He noted that the current market setup bears similarities to the crypto market structure seen in 2020.

This is where BTC price could stay sideways for a few months, as capital rotates into altcoins. As of now, Ethereum (ETH) has shown mild gains at 2.54%, and XRP is gaining 3%.

Solana is up 4% today, with a major focus still tilting towards HYPE and ZEC, which are up 18% each. Analyst expects capital to rotate from Bitcoin into stronger altcoins.

The post Crypto Market Rally on US-Iran Peace Deal, Prices Shoot Over 3%  appeared first on The Market Periodical.