Washington, DC – Digital and traditional financial markets saw significant shifts in trading today, with cautious optimism prevailing among investors. This was driven by reports of an imminent ceasefire agreement between the United States and Iran.
Bitcoin surged again, nearing the $70,000 mark. It recorded gains exceeding 2.8%, reaching $69,588.87. Altcoins followed suit, with Ethereum gaining 3.08%, Solana 2.49%, and Ripple 2.77%. Ripple remained stable at $1.34.
The 45-day truce and its direct impact
This surge in cryptocurrencies coincides with leaks suggesting a “last chance” for peace. The leaks included a proposed 45-day ceasefire, extendable by mutual agreement. This ceasefire aims to allow for comprehensive negotiations leading to an end to the war that has been raging since last February. Analysts believe that the prospect of reopening the Strait of Hormuz and a de-escalation of military tensions has given a significant boost to high-risk assets. This comes despite thin liquidity resulting from the closure of many Asian and European markets for public holidays.
Strong dollar and interest rate hurdle
On the other hand, the US dollar continued its upward trend against major currencies. This came as hopes faded for an interest rate cut by the Federal Reserve (the US central bank). The greenback traded at $1.1518 against the euro and $1.3207 against the British pound, while remaining stable against the yen at 159.59 yen.
The dollar’s strength is attributed to the robust US jobs data released on Friday. The data showed an increase of 178,000 jobs in March, the highest rate since the end of 2014, with unemployment falling to 4.3%. These figures, coupled with rising oil prices due to the protracted war, have led traders to rule out any possibility of an interest rate cut this year. This comes after pre-war expectations pointed to at least two cuts. With 10-year Treasury yields rising, the dollar remains the preferred “safe haven.” Meanwhile, the world awaits developments in the regional mediation efforts.
