Samson Echenim 
The cryptocurrency market reacted sharply and positively to US President, Donald Trump’s announcement of a ceasefire agreement between warring Iran and Israel on Monday.
The crypto market rebounded from a weekend dip, with Bitcoin, Ethereum, and XRP rising by 5%, 9%, and 10%, respectively.
As at Tuesday morning, most altcoins have gained averagely 13% with some reaching over 20% whole Bitcoin maintains above $105,000 after dipping to $99,000 at the weekend.
The recovery comes as President Donald Trump announced that Israel and Iran have agreed to a complete ceasefire.
Iran earlier launched a “de-escalatory” missile attack on a US military base in Qatar on Monday.
Using his official X handle, @realdonaldtrump, Trump stated that Israel and Iran would each conduct a 12-hour ceasefire, after which the war threats would come to an end. He indicated that the warring nations had agreed to a full ceasefire set to begin within a few hours, potentially ending what he referred to as “12-day war.”
President Trump stated that the ceasefire will unfold in two phases, where Iran will observe the first 12 hours, followed by Israel, leading to a formal end of the clash between the two sides.
Trump also noted that Iran notified the US before it launched attacks on a US military base in Qatar. He shared that there were no casualties from Iran’s actions, suggesting that the attacks were “de-escalatory.”
The event follows an escalation of war tensions over the weekend after Israel intensified its air attacks, targeting multiple sites across Iran on Saturday and Sunday. The US also joined the conflict by conducting air strikes on three Iranian nuclear facilities on Sunday, sending the crypto market tumbling.
Top altcoins rebounded alongside Bitcoin, with Ethereum, XRP and Solana (SOL) recording gains of 9%, 10% and 10%, respectively.
Several crypto categories also reacted positively to the update late Monday. The meme sector rose 9% following President Trump’s statement, with Dogecoin (DOGE), Shiba Inu (SHIB), and PEPE rallying 9%, 10%, and 12%, respectively.
Likewise, the artificial intelligence (AI) token category marked a 9% gain following the news of a ceasefire. Top AI tokens, including Bittensor (TAO), Internet Computer (ICP), Near Protocol (NEAR), Artificial Superintelligence (FET), Render (RENDER), and Virtual Protocol (VIRTUAL), saw double-digit gains as President Trump shared positive updates around Israel-Iran peace talks.
The development follows the US Federal Reserve’s removal of the term “reputational risk” from its bank supervision guidelines, easing restrictions placed on banks dealing with crypto clients.
