Bitcoin briefly touched $72,700 on Wednesday as traders cheered a US-Iran ceasefire deal, only to retreat below $71,000 within hours as fresh Middle East violence shattered the optimism.
The rally was real — but it didn’t last long enough to matter.
Hormuz Still Blocked, Oil Bounces Back
Israel launched its largest assault on Lebanon yet, striking over 100 Hezbollah sites across Beirut in under ten minutes. Iran’s parliament speaker declared that three ceasefire clauses had already been violated, sending WTI crude up 2.8% to $97.03 and Brent up 2.5% to $97.14 a barrel, reversing most of the previous session’s 16% plunge.
The Strait of Hormuz, which normally sees around 135 ships daily, recorded just three transits on Wednesday. Over 800 vessels remain stuck in the Gulf, awaiting clarity on safe passage.
Ether dropped 1.1% to $2,185, tracking Bitcoin’s retreat amid broadly weakening risk appetite. Gold edged slightly lower to $4,713, while the dollar held steady, suggesting markets were cautious but not in full panic mode.
Market analysts noted the rally had been driven largely by algorithmic and momentum strategies rather than genuine fundamental improvement. The rebound lacked staying power once geopolitical pressure returned.
Fed Adds Another Layer of Pressure
Minutes from the US Fed’s March meeting, released Wednesday, showed growing concern among policymakers about persistent inflation. Some officials argued the Fed should keep rate hikes on the table if oil prices stay elevated.
A prolonged Hormuz blockade would keep energy costs high, delaying any Fed pivot that crypto markets have been counting on. Higher rates historically weigh on risk assets like Bitcoin, making war uncertainty and hawkish Fed signals a tough combination for bulls.
For Bitcoin, the macro backdrop remains uncomfortable — caught between fading hopes of a ceasefire and a Fed in no rush to ease.
The post Bitcoin’s Ceasefire Rally Dies Fast as War Chaos Returns appeared first on BeInCrypto.
Source: https://beincrypto.com/bitcoins-ceasefire-rally-dies-fast-as-war-chaos-returns/
