The price of Bitcoin (BTC) and other cryptocurrencies are surging as a ceasefire between the U.S. and Iran takes hold.
In early trading on April 8, Bitcoin is up 5% and trading at $72,000 U.S. Cryptocurrencies are rising sharply alongside other risk assets such as stocks on news of a pause in the Iran war.
Ethereum (ETH) is trading 7% higher at $2,256.46 U.S. per digital token. The cryptocurrency XRP (XRP) is up 6% at $1.38 U.S.
The surge in crypto is occurring as U.S. equities soar, with the Dow Jones Industrial Average up 1,300 points in pre-market trading. Stock markets in Europe and Asia are 5% higher on the day.
Investors are flooding back into crypto after U.S. President Donald Trump announced that the U.S. and Israel had reached a two-week ceasefire with Iran.
Digital asset prices are also vaulting higher as crude oil prices crash, with West Texas Intermediate (WTI) crude oil down 18% and trading at $93 U.S. per barrel.
A day earlier, WTI crude oil’s price had been above $115 U.S. a barrel as the Strait of Hormuz waterway was closed to oil tankers and commercial ships amid the fighting.
Prior to today, Bitcoin and other cryptocurrencies had been trading sideways for several weeks as markets tried to gauge how long the Iran war would last.
Analysts and market commentators are warning investors not to get complacent though, saying that the ceasefire appears to be fragile and could resume in coming weeks.
The price of $75,000 U.S. is viewed as a key support level for Bitcoin, with most analysts saying the largest crypto needs to breach it to stage a meaningful recovery.
