The conflict between Israel and Hamas has had a significant impact on the global cryptocurrency market. After previous drone attacks, the value of Bitcoin and other cryptocurrencies plummeted, leading to a widespread sell-off.
However, there may be a change in the situation this time as Hamas proposes a ceasefire to Israel. The proposal was put forward by Egypt and Qatar, who have been acting as intermediaries in the negotiations between the two sides. Despite this, Israel has declared that it will continue to put pressure on Hamas. At the same time, Israeli delegates will meet with mediators to explore the possibility of reaching an agreement. At present, Israel has reportedly rejected the proposal, stating that it does not meet their basic requirements, according to reports from the BBC.
As the negotiations continue, crypto experts and analysts are considering the potential impact of a truce between the warring nations on the crypto market. Let’s explore what could happen in the crypto market if this scenario unfolds.
Bitcoin’s price may rally to $80,000. Currently, the world’s largest cryptocurrency by market cap is trading at $63,795, showing a 1.15% decline in the last 24 hours, according to CoinMarketCap data. Prominent crypto analysts have made bold predictions that the price of Bitcoin will reach the $80,000 range by the end of May, with hopes of it flirting with $70,000 by the end of this week.
Notably, Ali Martinez, a popular analyst on X (formerly Twitter), has suggested that Bitcoin is still in its prime zone, even after its surge from $57,000 to $64,000. Martinez emphasizes that the MVRV 90-Day Ratio supports this claim.
Bitcoin’s 24-hour trading volume has seen a significant increase of 62.75% to $30.2 billion. Moreover, the open interest for all Bitcoin futures has been highly volatile over the past day. In particular, there has been a withdrawal of digital assets from Robinhood wallets due to the SEC’s Wells notice against the company. With the anticipated post-halving effect and the potential ceasefire between Israel and Hamas, Bitcoin may be on its way to reaching $80,000.
As for other altcoins, the situation may be different. Ethereum, the second-largest cryptocurrency by market cap, may experience a delayed price rally, as suggested by QCP Capital, a digital asset trading firm in Singapore. The firm highlights that Ethereum is not experiencing the same level of positivity, and its risk reversal is still at -4%. This could be due to the delayed approval of the ETH spot ETF by the Securities and Exchange Commission for VanEck and Ark21 on May 23 and 24.
On the other hand, XRP, the trending cryptocurrency, witnessed a brief price rally following the SEC’s deadline to file its remedies brief reply. Lawyers argued that the SEC was unreasonable in seeking a $2 billion settlement from Ripple. Currently, XRP is trading at $0.541, representing a 0.91% decline in the last day. Furthermore, the trading volume during this period has increased by over 215% to $1.89 billion.
In the world of memecoins, Shiba Inu, Dogecoin, and PEPE may see a resurgence in value following a ceasefire between Israel and Hamas, as their growth is largely driven by hype, market sentiment, and positive news. At the time of writing, SHIB, DOGE, and PEPE are being traded at $0.000024, $0.156, and $0.000008468, respectively.
Tags:
Bitcoin (BTC)
Ethereum
SHIB
XRP
