Bitcoin rose on Tuesday as the risk appetite improved following US President Donald Trump’s ceasefire announcement between Israel and Iran.

Both countries agreed to the ceasefire, although violation accusations soon crept up.

Bitcoin rose 3.2% as of 01:24 GMT to $104,042, but still moved within a tight June range.

Most cryptocurrencies were boosted by the ceasefire announcement, with risk appetite rebounding once more.

Trump announced the full ceasefire, ending a 12-day conflict that led to the displacement of millions of people from Tehran.

Israel agreed to the US proposal, noting it has achieved its goal of destroying Iranian nuclear and missile targets.

US Law Proposal To Ban Official Crypto Investments

Democratic senators proposed a bill that would ban official governments, including US President Donald Trump from investing in cryptocurrencies.

The bill aims at preventing conflict of interest, but it’ll likely be defeated at the Republican-dominated Senate. 

Trump has been a strong crypto supporter since taking office, but has faced criticism about potential personal benefits for his wealth due to his crypto investments. 

Miners’ Strategic Reserves 

Data from CryptoQuant showed the Miners’ bitcoin reserves slipped last week, in a sign of covering losses or rising operational costs.

The Miners’ Position Index surged 55% in the past three days, showing increasing movements in the miners’ wallets, likely outward flows, which shows mounting selling pressures in the market. 

Oil prices extended their heavy losses on Tuesday and plumbed two-week lows after Israel’s approval of US President Trump’s ceasefire proposal with Iran, reducing concerns about Middle East supply disruptions. 

As of 09:27 GMT, Brent futures slid 3.5% to $69 a barrel, while US West Texas fell 3.5% to $66.14 a barrel.

The losses reached 5% at the opening following Trump’s ceasefire announcement before tapering off.

Israel’s PM Netanyahu said he agreed on Trump’s ceasefire proposal after achieving its goal of removing Iran’s nuclear and ballistic threats.

However, doubts remain about the effectiveness of the ceasefire, after Israel announced yet another strike against Iran following an alleged Iranian missile attack, which Iran denied. 

Severe Volatility 

The 12-day conflict led to severe fluctuations in oil prices, with Brent moving within a $10 range on Monday, the widest since July 2022.

Both major contracts closed down 7% yesterday away from five-month highs as the conflict seemed to be settling down.

Trump seems keen on ending the conflict as soon as possible so that the US is not dragged to an endless war, a sentiment which is shared with Iran.

The US dollar fell on Tuesday after US President Donald Trump announced a ceasefire agreement between Israel and Iran, boosting risk appetite and tanking oil prices. 

Trump announced the full ceasefire, ending a 12-day conflict that led to the displacement of millions of people from Tehran.

Israel agreed to the US proposal, noting it has achieved its goal of destroying Iranian nuclear and missile targets.

Yen and Euro Rally

Both the yen and euro benefited sharply from the decline in oil prices, as both Japan and the EU rely heavily on oil and natural gas imports.

The dollar fell 0.75% today against the yen to 145.03, while the euro rose 0.27% to 1.1609, approaching October 2021 highs at 1.1632.

The dollar faced more pressure after bearish statements from Fed official Michelle Bowman, which opened the door for a rate cut soon.

Fed Governor Christopher Waller also said a rate cut could be studied at next month’s meeting.

Trump once again called for rate cuts ranging between 3 and 3 percentage points.

Markets are now pricing a 23% chance of a Fed rate cut in July, up from 14.5% in the previous day, according to the Fedwatch tool.

Dollar Performance

The dollar index fell 0.14% against a basket of major rivals to 98.09.

The Australian dollar surged 0.7% to $0.6506, while the New Zealand dollar added 0.75% to $0.6025.

Israel’s Shekel spiked 1.5% against the dollar to February 2023 highs.

A dollar’s decline was long anticipated after an over 50% surge in its value in 2025 compared to its lows in the global financial crisis. 

Trump’s chaotic tariff campaign hurt the appeal of US assets, and sent the dollar 10% lower in just a few months. 

Investors are worried about a weaker investment environment in the US and a stubborn government deficit that’s now reaching 7% of total GDP, which threatens the US credit rating.

Gold prices fell in European trade on Tuesday to a two-week trough as the risk appetite improved in the markets after US President Donald Trump announced an Israel-Iran ceasefire, weakening haven demand.

Later today, Fed Chair Jerome Powell is scheduled to testify ahead of the House of Parliament in Washington.

Prices

Gold prices fell 1.55% today to $3316 an ounce, the lowest since June 11, with a session-high at $3370.

On Monday, gold prices were little changed despite riveting developments in the Middle East.

Ceasefire 

US President Donald Trump announced a ceasefire agreement between Iran and Israel, to get into effect in a few hours.

The deal, reached with Qatari help and US coordination, stipulates an Iranian ceasefire first, followed by Israel in 12 hours, then the announcement of the end of the 12-day war in 24 hours.

Trump lauded the agreement which avoided a war that would’ve destroyed the Middle East.

US Rates

Fed official Michelle Bowman said on Monday that the time for an interest rate cut is approaching amid potential risks to the labor market. 

The odds of a Fed 0.25% rate cut at the July meeting rose from 15% to 23% according to the Fedwatch tool.

The odds of a Fed September rate cut rose from 68% to 78%.

SPDR

Gold holdings at the SPDR Gold Trust rose 7.16 tons yesterday to a total of 957.4 tons, the highest since September 2022.