The US and Iran are reportedly set to extend their existing ceasefire for approximately 60 days, temporarily easing market concerns about a further escalation of the situation in the Middle East. As a result, global risk appetite has rebounded, with US stocks continuing to strengthen, the S&P 500 rising to around 7400 points, and Bitcoin remaining above $75,000.
Ceasefire negotiations continue to advance
The report, citing multiple sources, stated that Washington and Tehran are buying time for a broader de-escalation plan, with related consultations continuing in Qatar. Trump also confirmed that the United States is willing to extend the current ceasefire to await a unified agreement from Iran.
The report noted that this arrangement builds on the initial ceasefire reached in early April. The market interprets this as a reduction in the risk of a full-blown conflict in the short term, particularly with a easing of expectations regarding supply shocks around the Strait of Hormuz.
US stocks hit new highs
Following news of the ceasefire extension, investors continued to increase their allocation to risk assets. The S&P 500, having already hit a new closing high, rose further towards 7400 points, extending its upward trend of recent weeks.
Although the situation in the Middle East is not entirely calm, and the report also mentioned that the United States is still carrying out so-called "self-defense strikes" against some Iranian military targets, the market is more concerned that the conflict has not quickly escalated into a full-scale escalation. This expectation has alleviated concerns about energy transport disruptions and soaring oil prices.
Bitcoin continues to follow the US stock market
The crypto market also benefited from improved risk sentiment. Bitcoin recently held above $75,000, continuing its previous rebound, indicating that its correlation with the US stock market remains significant.
The report, citing data from other media outlets, stated that after the initial ceasefire announcement in early April, Bitcoin surged, with Ethereum also rising in tandem. This correlation has continued recently, with the market increasingly viewing Bitcoin as part of a risk asset portfolio rather than as an independent safe-haven asset.
Based on current trading performance, as long as the ceasefire remains in place and risk appetite in the stock market does not decline significantly, short-term sentiment for crypto assets will still be supported. However, if US stocks weaken, the pressure could quickly spread to mainstream tokens such as Bitcoin.
