Middle East situation breaks the ice! Bitcoin and Ether surge, is the bull run really coming?

Last night, a heavyweight news shook the world — Israel and Iran reached a temporary ceasefire agreement! The Middle Eastern powder keg has temporarily extinguished its smoke, the financial markets instantly boiled, and the reaction of the cryptocurrency market can be described as "light speed"!

Within half an hour of the news breaking, Bitcoin surged through key resistance levels like a rocket, with a maximum increase approaching 2%! Ether, on the other hand, performed even more impressively, with a spike in its increase to 3.5%, leading the mainstream coins. The market trading volume skyrocketed by nearly 40%, as investors switched from a wait-and-see approach to "FOMO" (fear of missing out), resulting in a dramatic comeback for cryptocurrencies!

Why can geopolitical ceasefires trigger cryptocurrencies?

1. The shift from safe haven to risk: During wartime, gold and the US dollar are the preferred safe havens. However, as the situation eases, funds quickly flow into high-risk, high-reward assets. Bitcoin and Ethereum, as emerging "digital risk assets," naturally become the new favorites for investment.
2. Liquidity expectations heat up: geopolitical conflicts ease, and global economic downturn risks decrease. Investors anticipate that central banks in various countries will adopt more accommodative monetary policies, improving market liquidity, and cryptocurrencies, being highly sensitive to liquidity, respond first.
3. "Narrative" drives the market: The cryptocurrency market is propelled by "stories." This time, the "peace dividend" perfectly connects with the previous "halving expectations" and "ETF capital inflows" hot topics, injecting new momentum into price increases, attracting off-market funds to rush in.
4. Technical resonance explosion: Before the announcement, BTC and ETH had been consolidating at key support levels for several days. Positive news acts as a fuse, instantly igniting technical buying, with short covering and chasing funds jointly driving the price surge.

What do market experts think?

- Analyst James Wang: "The speed and intensity with which cryptocurrencies react to macro events prove that their status as a global economic barometer is rising. A ceasefire eliminates the 'black swan' risk, and funds are accelerating toward growth assets."
- Crypto KOL: "ETH's increase surpassing BTC indicates that the market is chasing higher returns! This may be a precursor to the explosion of altcoins, with a focus on Layer 2 and AI concept tokens!"
- Community hot discussions: #中东停火爆拉币圈# is trending, investors are fiercely debating: "Is the bull run really back?" "Should we chase the rise now or wait for a pullback?" "Where's the next opportunity?"

Opportunities and Strategies for the Future Market

- Short term: Whether the ceasefire agreement can last, macroeconomic data (especially inflation) and capital flows will determine whether the upward trend can continue. Be cautious of the risk of a pullback after good news is realized.
- Mid-term: With geopolitical risks decreasing, combined with the benefits of Bitcoin halving and expectations for Ethereum ETFs, the crypto market is looking positive in the long run. A pullback may be an excellent opportunity to position in quality assets.
- Potential tracks: In addition to BTC and ETH, Layer 2 scaling solutions, RWA (real world assets), DePIN (decentralized physical infrastructure), and the AI + blockchain concept sector are expected to stand out as the market warms up.

What do you think about this "peace dividend" market?
Is it a brief carnival or the new starting point of a bull run? Which coins have you laid out? Which track do you have the most confidence in?
Let's chat in the comments section and seize wealth opportunities together!
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