News of progress toward a peace agreement between the U.S. and Iran boosted global risk appetite on Monday. The crypto market followed suit, with Bitcoin rising above $66,000, Ethereum surpassing $1,800, and XRP briefly climbing above $1.25, becoming one of the top-performing assets among the top ten cryptocurrencies by market capitalization.
The situation in the Middle East has eased.
The market recovery occurs against the backdrop of a temporary easing of tensions in the Middle East. Reports indicate that the United States and Iran have made progress toward a preliminary peace agreement aimed at ending regional hostilities. Iranian officials say the agreement is expected to be formally signed later this week.
CNN reported that the ceasefire arrangement initiated in early April may be expanded and extended, creating space for subsequent 60-day negotiations. The market is also closely watching whether the Strait of Hormuz will resume normal operations, as this waterway is critical to global crude oil and energy transportation.
Cryptocurrency market sentiment improves
However, geopolitical risks have not fully subsided. According to the Lebanese National News Agency, Israel has expanded its military operations in southern Lebanon, indicating that the situation in the Middle East may continue to impact global markets.
As risk-off sentiment eases, capital flows back into risk assets, leading to a broad rebound in the digital asset market. Bitcoin, Ethereum, and XRP all rose in tandem, reflecting improved investor sentiment compared to earlier periods.
The Crypto Fear & Greed Index rose to 20 on Monday, remaining in the "extreme fear" range but higher than Friday's 18 and significantly above last week's 8, indicating a recovery in market sentiment.
XRP rose nearly 11% in the last 24 hours.
As of press time, XRP is trading at $1.267, up nearly 11% over the past 24 hours. During this rally, XRP has outperformed most major tokens, becoming one of the market's key focus points.
From a price performance perspective, XRP has reclaimed the $1.25 level, but still faces significant selling pressure above. If market risk appetite continues to improve, XRP’s short-term volatility will remain influenced by both geopolitical developments and the broader cryptocurrency market trend.