Bitcoin surged to a three-week high near $72,600 following the announcement of a tentative 14-day cease-fire between the U.S. and Iran. The broader crypto market reacted positively, with notable weekly gains for Ethereum and a massive 60% surge for Zcash. The cease-fire announcement, which included Iran’s agreement to reopen the strategically vital Strait of Hormuz, provided immediate market relief despite ongoing regional uncertainties.
The cryptocurrency market experienced immediate volatility this week as geopolitical tensions in the Middle East developed rapidly. Bitcoin initially remained range-bound before jumping to $70,000 on reports of U.S.-Iran negotiations, then dipping as talks reportedly stalled.
President Trump announced a 14-day cease-fire on his social media platform just hours before a previously set deadline expired. The agreement indicated both countries would halt attacks and that Iran would reopen the Strait of Hormuz, a critical global oil chokepoint.
Markets reacted with sharp fluctuations, sending Bitcoin to a three-week high of $72,600 while oil prices dropped. The cease-fire’s durability remains questionable, however, as the Strait has not fully reopened and Israel continued attacks in Lebanon.
For the week, Bitcoin gained 7.4% to trade around $72,000, while Ethereum surged 6.8%. Privacy-focused cryptocurrency ZEC stole the show with a massive 60% surge to over $375, according to market data. The total cryptocurrency market capitalization stood at $2.53 trillion.
In regulatory news, Japan approved legislation classifying cryptocurrencies as financial instruments. The move is designed to enhance investor protection and ban insider trading based on undisclosed information.
Meanwhile, Morgan Stanley debuted its spot Bitcoin ETF, which saw nearly $35 million in first-day trading volume. In Hong Kong, the Monetary Authority granted the first stablecoin issuer licenses to HSBC and a consortium led by Standard Chartered.
Corporate accumulation of Bitcoin continued as MicroStrategy resumed its purchasing spree. The company, led by Michael Saylor, spent roughly $330 million to buy 4,871 BTC, increasing its total stash to almost 767,000 units.
