Bitcoin's Price Boost from Ceasefire News Begins to Lose Steam as Investors Await Tangible Results

The recent surge in Bitcoin's price, driven by the U.S.-Iran ceasefire, is starting to lose momentum as the market seeks concrete evidence of progress. Despite briefly reaching $76,000, the cryptocurrency's price has fallen back, mirroring the choppy pattern seen earlier in the week. This comes after a 10% increase, largely fueled by the ceasefire news. However, with President Donald Trump suggesting the conflict is nearing an end, markets are now looking for substantial advancements, such as the restoration of oil flows through the Strait of Hormuz, which accounted for 20% of global flows before the war. According to QCP Capital, one of the world's largest digital asset market makers, 'A ceasefire extension alone is no longer sufficient; markets require tangible progress, including restored energy flows and clearer disinflation.' Traders should keep a close eye on oil prices, as signs of normalization are likely to emerge in energy markets first. The decline in Bitcoin and Ether's 30-day implied volatility indexes suggests traders expect significant progress soon. Meanwhile, Solana and DOGE may experience increased volatility due to rising demand for leveraged exposure. In traditional markets, the MOVE index has declined to 65%, reversing the war-led spike to 115% in March, which is bullish for risk assets. The stability in the U.S. bond market helps ease credit and financial conditions.