Bitcoin Bounces as Israel, Hezbollah Agree To Ceasefire, Boosting U.S.-Iran Peace Deal

Bitcoin has climbed on the back of the ceasefire agreement between Israel and Hezbollah. The ceasefire is significant, as it provides a boost to the U.S.-Iran peace deal after clashes between the two sides stalled the initial peace talks the U.S. and Iran were to hold today.

Bitcoin Climbs On Israel-Hezbollah Ceasefire Agreement

According to a Reuters report, Israel and Hezbollah have agreed to a ceasefire which will begin today, citing a senior U.S. official. This follows the recent clash between the two sides, which contributed to the stalled U.S.-Iran talks in Switzerland today.

The BTC price climbed on the back of this development, rising to nearly $63,000, according to TradingView data. Bitcoin is currently trading at around $62,600, down less than 1% today. The leading crypto has notably fallen to as low as $62,200 earlier today.

The Israel-Hezbollah ceasefire agreement is significant as 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 CoinGape reported, Iran threatened to launch retaliatory strikes at Israel over the strikes in Lebanon, noting that the Israeli strikes violated the MOU with the U.S. Iran also 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, which 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. Polymarket data shows only a 26% chance that there won’t be a meeting by June 30, while there is 44% chance that the talks will still be held in Switzerland.

Despite the positives of the U.S.-Iran peace deal, Bitcoin still faces selling pressure following the Fed’s decision to leave interest rates unchanged at the FOMC meeting earlier this week. 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, signaling 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.