The cryptocurrency market continued its upward trend on Tuesday as geopolitical tensions eased and political pressure mounted on the US Federal Reserve.
Following United States President Donald Trump’s confirmation of a ceasefire between Israel and Iran, investor confidence was restored, triggering widespread gains across the digital asset space.
Bitcoin is currently trading at $105,283.82, up 3.45 percent in the past 24 hours, following a sharp weekend dip that saw the leading cryptocurrency fall below $100,000 before rebounding in response to the ceasefire announcement.
Ethereum and XRP were also in the rally and recorded 9 percent and 7 percent gains, respectively. Solana rallied 10 percent and helped lead a larger recovery that led the cumulative crypto market capitalization to over $3.24 trillion.
The market mood has changed to become neutral, which implies that traders are less uncertain. President Trump stated on his Truth Social post that Iran and Israel had accepted a phased 12-hour ceasefire that ended what President Trump titled the 12-Day War.
He noted that Iran would take the first stage, followed by Israel. Trump added that it was de-escalatory since Iran had alerted the US of a missile launch that targeted a military compound in Qatar, where there were no casualties.
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Meme Coins and AI Tokens Extend Gains
The ceasefire news also sparked gains across various crypto sectors. Meme coins rebounded strongly, with Dogecoin (DOGE), Shiba Inu (SHIB), and PEPE posting daily increases of 9 percent, 10 percent, and 12 percent, respectively.
Newer entrants like SPX6900, Mog Coin, and dogwifhat rose by over 20 percent, supported by high trading volumes.
AI tokens saw renewed momentum, led by Bittensor (TAO), which rose 16 percent. Livepeer (LIVE) and Theta Network (THETA) rose over 12 percent, and Render (RENDER) was up more than 14 percent, with investor interest turning again to technologically-focused digital assets. There were also moderate gains in the DePIN and RWA-related tokens.
In the meantime, institutional behaviour remained positive, with crypto ETFs showing impressive inflows of more than $327 million worth of Bitcoin and big investors accruing over $100.7 million worth of Ethereum.
The capital inflows symbolized an increasing institutional presence, even though the open interest was decreasing.
Trump Targets Fed Chair Powell in Latest Post
Adding to Tuesday’s market momentum, President Trump also directed sharp criticism at Federal Reserve Chair Jerome Powell. In a Truth Social post, he questioned why the Fed had not lowered interest rates, citing zero cuts in the US compared to ten in Europe.
Trump said that there was no inflation in the US economy and the current rates were unnecessary. According to him, lowering rates by two to three percentage points would save the nation 800 billion dollars every year.
Trump urged Congress to challenge Powell over his refusal to act, termed him hard-headed, and said that the effects of not taking action were going to be long-term.
His remarks created a debate regarding a possible change in the monetary policy, an aspect that tends to favor risk-related assets such as cryptocurrencies. Market participants considered the comments to be mounting pressure on the Fed, which could lead to more accommodating policies in the future.
Conclusion
Crypto prices are rising today due to two major catalysts: easing geopolitical tensions and growing political pressure for lower interest rates. As Bitcoin trades above $105,000 and altcoins follow suit, the market continues to gain momentum amid improving sentiment and heightened institutional activity.
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