The recent truce between the United States and Iran has had a significant impact on the crypto market, leading to a sharp rebound in confidence among investors.
The truce, which included a two-week ceasefire and the reopening of the Strait of Hormuz, has reduced uncertainty and allowed risk markets to regain ground. This is evident in indicators such as Bitcoin's Open Interest, which measures total open positions in the market, having increased significantly from $21 billion to around $24.2 billion.
The shift towards negotiation rather than confrontation has weakened safe-haven asset demand, allowing cryptocurrencies to strengthen. The DXY index, which tracks the US dollar's value, has declined from levels above 100 points to around 98.7, indicating a loss of strength in dollar demand.