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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 anxiety, after US President Donald Trump unexpectedly declared an extension of the ceasefire with Iran.
According to data from the global cryptocurrency market aggregator CoinMarketCap as of 9:12 AM on the 22nd, the leading cryptocurrency Bitcoin (BTC) surged by 0.77% compared to an hour ago, reclaiming the $76,393 level in one go. At the same time, the leading altcoin Ethereum (ETH) 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 showed an upward curve, pushing the total virtual asset market capitalization to $2.56 trillion, and the Fear & Greed Index also stabilized at 56 (Neutral).
This dramatic 1-hour chart rebound stemmed from the de-escalation of the war clouds in the Middle East, which had been pushed to the brink. Previously, the New York stock market reflected frozen investor sentiment as its three major indices all closed slightly lower due to uncertainties surrounding the second armistice negotiations. However, just one day before the ceasefire was set to end, President Trump's sudden announcement of an extension completely reversed market 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 strongly reignite the rally in the virtual asset market. Christopher Wing, a strategist at Oversea-Chinese Banking, analyzed that risk assets, which had been suppressed by uncertainty, have a strong possibility of rebounding sharply the moment either side backs down first.
It is also pointed out that premature relief is unwarranted, as unexpected variables still remain until a complete second armistice 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 momentum for a rebound.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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