Bitcoin price surges above $72,500 as Trump and Iran announce ceasefire

Bitcoin price surged late Tuesday, climbing roughly 5% from a day-long range near $67,000--$68,000 to an intraday high of $72,753, as geopolitical tensions eased following a surprise ceasefire announcement tied to U.S.-Iran negotiations. The rally came after Donald Trump said he would suspend further military escalation against Iran for two weeks, provided Tehran agrees to reopen the Strait of Hormuz - a critical artery for global oil shipments. The announcement marked a sharp shift from earlier rhetoric, when Trump had threatened strikes on Iranian infrastructure if a deal was not reached by an 8 p.m. ET deadline. In a post on Truth Social, Trump described the development as a "double sided CEASEFIRE," saying the U.S. had "met and exceeded all Military objectives" and was now close to a broader agreement aimed at securing long-term peace in the Middle East. He added that a 10-point proposal from Iran had been received and could serve as a "workable basis" for negotiations, with most major points of contention already resolved. Bitcoin price pumps 5%... Markets reacted almost immediately. Bitcoin price, which had traded sideways for most of the day amid uncertainty, broke higher within minutes of the announcement. The move coincided with a broader shift in global risk sentiment, as traders priced in a reduced likelihood of further escalation in the region. The Strait of Hormuz has been at the center of the conflict, with Iran's effective blockade driving oil prices sharply higher in recent weeks and raising fears of prolonged supply disruptions. Any indication that shipping lanes could reopen -- even temporarily -- has significant implications for global markets, from energy to equities to digital assets. The ceasefire proposal was reportedly facilitated in part by Pakistan, with Prime Minister Shehbaz Sharif playing a key role in urging a delay to U.S. military action to allow diplomacy to proceed. Iranian officials signaled conditional support, stating that safe passage through the strait could resume if attacks cease. For Bitcoin price, the action underscores its continued sensitivity to macro and geopolitical developments. While often framed as a hedge against instability, the asset has increasingly traded in line with broader risk assets during periods of acute uncertainty -- falling when tensions rise and rallying when they ease. Tuesday's move reflects that dynamic. Earlier in the day, Bitcoin price drifted lower as traders weighed the nearness of imminent strikes. Once the ceasefire framework emerged, sentiment flipped, triggering a sharp upside move as risk appetite returned. Still, analysts caution that the rally may depend on whether the ceasefire holds and negotiations progress. The two-week window leaves significant uncertainty, and any breakdown in talks could quickly reintroduce volatility across markets. For now, however, the combination of easing geopolitical risk and renewed optimism around diplomacy has given Bitcoin a clear boost - pushing it back above key psychological levels and reinforcing its role as a fast-moving barometer of global sentiment. At the time of writing, Bitcoin price is right below $72,000.