Bitcoin's price surged past $71,000, reaching $71,600 amid optimism from a US-Iran ceasefire, while Ethereum and other cryptocurrencies also gained.
Bitcoin's price surged by 4.3% on April 8, surpassing the $71,000 threshold and trading at approximately $71,600 shortly thereafter.
In the wake of Bitcoin's rise, other cryptocurrencies followed suit. Ethereum climbed 6.3% to reach $2,200, marking its highest price since mid-March.
Among the top ten cryptocurrencies, Hyperliquid saw a notable increase of 7.8% in 24 hours, while XRP and Solana gained 5.5% and 5.8%, respectively. The overall cryptocurrency market capitalization increased by 4.15%, reaching $2.45 trillion.
Liquidations in the market surpassed $597 million, with short positions contributing most of the losses at $428.9 million.
Market sentiment indicators have experienced a slight uptick, moving from 11 to 17 points, although they remain within the extreme fear zone.
Market Optimism Linked to US-Iran Ceasefire
The recent rally in risk assets is largely attributed to a ceasefire announcement between the United States and Iran. President Donald Trump confirmed a two-week truce, which has sparked optimism in the markets.
🚨 President Donald J. Trump makes a statement on Iran: pic.twitter.com/9mqTayL0Q3
— The White House (@WhiteHouse) April 7, 2026
“The reason for the ceasefire is that we have completed and exceeded all military objectives. We are now at an advanced stage of developing a long-term peace agreement with Iran,” Trump stated.
Additionally, Trump announced an agreement from Iran ensuring safe passage through the Strait of Hormuz, a critical route that previously faced blockades, causing oil price volatility.
Brent crude oil prices dropped by 15% to $92 per barrel, while WTI futures fell by 16% to $94.7, down from over $100 prior to the ceasefire.
Despite the positive momentum in cryptocurrency markets, analysts express caution regarding the sustainability of this trend. LVRG director Nick Rack highlighted that uncertainties surrounding the ceasefire and macroeconomic pressures could hinder growth.
“Uncertainty regarding the fulfillment of conditions, the threat of renewed escalation, and macroeconomic pressures could limit growth as investor sentiment shifts,” Rack noted.
Dominic John from Zeus Research pointed out that a sustained rally in the crypto market will rely on stable macroeconomic conditions and consistent capital inflows. Meanwhile, Coin Bureau head Nick Pakrin warned that Bitcoin's price falling below $68,000 could be perilous, as significant negative gamma in the options market might push it down to $60,000.
