Iran’s ceasefire breach with Israel sparks $500M in crypto liquidations, with Bitcoin falling below $105K as markets react to rising tensions.
The rally in the cryptocurrency market is diminishing, as Bitcoin and altcoins have partially reversed their gains in response to the news that Iran has violated the ceasefire agreement with Israel in the past hour. The Iran-Israel peace agreement, which US President Donald Trump mediated on Monday, is currently at a critical juncture. Additionally, cryptocurrency market liquidations have increased to $500 million as long-term liquidations have resumed in the past hour.
The discontinuation of the Iran-Israel peace deal has increased crypto market liquidations
The crypto market has experienced a recent surge in volatility due to Iran’s violation of the ceasefire, which has prevented peace negotiations from taking place. The breach occurred within hours, despite President Trump’s announcement of a ceasefire and his request for both parties to maintain composure.
In response to Iran’s breach of the armistice, Israel’s defense minister declared that the military would conduct “intense strikes on regime targets in Tehran.”
Bitcoin’s price has partially reversed its gains, falling below $105K as of press time after rallying above $106K earlier today. Michael van de Poppe, a prominent cryptocurrency analyst, has stated that it is now appropriate to invest in declines. Poppe composed the following message on the X platform:
“Bitcoin has a trendswitch. It’s uptrending now, after we’ve had a massive liquidation crash taking place to sub $100K. It broke through $103K and hit the next resistance. Time to be buying the dip, so if we get to $103K, that’s the area you’d want to accumulate”.
Donald Trump Advocates for Federal Reserve Rate Reductions
Markets anticipate a potential outcome in July as discussions regarding Fed rate cuts have intensified. In a recent post on Truth Social, US President Donald Trump expressed his frustration with Fed Chair Jerome Powell for his refusal to endorse rate cuts at the June FOMC meeting. Trump composed the following:
“No inflation, great economy – We should be at least two to three points lower. Would save the USA 800 Billion Dollars Per Year, plus. What a difference this would make”.
Trump also stated that Powell could raise rates again if necessary, if the situation does not improve significantly following the rate reduction. “I trust that Congress will successfully manipulate this extremely incompetent and stubborn individual.” He also stated that we would be responsible for the consequences of his incompetence for an extended period.
