Bitcoin climbs on ceasefire news between Israel and Hezbollah. According to a Reuters report, the two sides have agreed to a ceasefire which will begin today, citing a senior U.S. official.
Consequently, the BTC price climbed on the back of this development, rising above $63,000, according to TradingView data. At the time of writing, Bitcoin trades at around 63,074, down less than 1% today. Notably, the leading crypto had fallen to as low as $62,200 earlier today.
Why Bitcoin climbs on ceasefire today
The Israel-Hezbollah ceasefire agreement is significant. Specifically, it boosts the U.S.-Iran peace deal, which both sides signed earlier this week. Israel had fired strikes in Lebanon, which contributed to the U.S. and Iran calling off talks in Switzerland today.
As previously reported, Iran threatened to launch retaliatory strikes at Israel over the strikes in Lebanon. Iran also noted that the Israeli strikes violated the MOU with the U.S. Furthermore, Iran threatened to reclose the Strait of Hormuz over the escalating violence in Lebanon.
However, with the ceasefire agreement, the U.S.-Iran MOU remains intact. Therefore, this is a positive for Bitcoin.
Talks still expected to hold before month end
Crypto traders are still betting on the U.S.-Iran talks to hold before the end of this month. For example, Polymarket data shows only a 26% chance that there won’t be a meeting by June 30. Meanwhile, there is a 44% chance that the talks will still be held in Switzerland.
Fed pressure remains
Despite the positives of the U.S.-Iran peace deal, Bitcoin still faces selling pressure. Specifically, this follows the Fed’s decision to leave interest rates unchanged at the FOMC meeting earlier this week. Consequently, BTC has been on a decline since the Fed rate decision.
BTC and the broader crypto market are also down as the Fed leaned hawkish. The central bank signaled it could raise rates this year. This comes amid inflation concerns, with prices rising due to the U.S.-Iran war, which began in February.
