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▲ Donald Trump, Bitcoin (BTC)/AI generated image ©
The global virtual asset market has overcome extreme volatility and returned to a sharp rebound. This is due to the rapid recovery of investor sentiment, which had been suppressed by geopolitical risks, after US President Donald Trump abruptly announced an extension of the ceasefire with Iran.
According to data from CoinMarketCap, a global cryptocurrency market data aggregator, as of 9:12 AM on the 22nd, the leading cryptocurrency Bitcoin (BTC) surged by 0.77% compared to an hour ago, instantly reclaiming the $76,393 level. At the same time, Ethereum (ETH), the leading altcoin, recorded a 0.38% increase to $2,328, while XRP (Ripple) and Solana (SOL) also rose by 0.55% each within an hour, trading at $1.43 and $86.15 respectively. Based on the short-term 1-hour chart, major virtual assets all drew an upward curve, pushing the total virtual asset market cap to $2.56 trillion, and the Fear & Greed Index also stabilized at 56 (Neutral).
This dramatic 1-hour chart rebound stemmed from the subsiding war clouds in the Middle East, which had been pushed to the brink. Previously, the New York stock market reflected frozen investor sentiment, with all three major indices closing slightly lower due to uncertainty surrounding the second peace talks. However, just one day before the ceasefire was set to end, President Trump's sudden announcement of a ceasefire extension completely reversed the market's sentiment. Immediately after this news, major index futures in the New York stock market, including the Dow Jones and Nasdaq, all turned bullish, and the spot dollar index fell, rapidly reviving risk-asset preference.
Market experts predict that the easing of geopolitical risks could powerfully ignite a new rally in the virtual asset market. Christopher Wing, a strategist at Oversea-Chinese Banking, analyzed that risk assets, which had been suppressed by uncertainty, are likely to rebound strongly the moment either side backs down first.
However, some point out that it is too early for premature relief, as unforeseen variables still remain until a complete second peace agreement is reached. Nevertheless, by avoiding extreme bombing and escalation scenarios, major virtual assets, including Bitcoin, are assessed to have shed their previous macroeconomic downward pressure and secured strong rebound momentum.
*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*
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