Bitcoin Wobbles at $68,500 as Iran Ceasefire Hopes Fade and Trump Sets Midnight Deadline

Bitcoin retreated to $68,589 during Asian trading hours Tuesday after a brief ceasefire-driven rally lost momentum, leaving crypto markets on edge ahead of a critical geopolitical deadline. The leading cryptocurrency slipped 0.6% over 24 hours after briefly touching $69,350 Monday, when reports of a potential 45-day ceasefire sparked a short-lived surge past $69,000 — optimism that evaporated within half a day.

The broader crypto market followed suit. Ether declined 1% to $2,104, Solana dropped 2.7% to $79.75, XRP shed 1.6% to $1.32, and Dogecoin fell 2.2% to $0.09, while BNB held relatively steady near $598. Monday's spike triggered $196.7 million in short liquidations as bearish traders were caught off guard by the ceasefire headlines, only for Tuesday's selloff to arrive after Iran reportedly rejected the proposal through Pakistani mediators, demanding a permanent end to hostilities, sanctions relief, and reconstruction support.

President Trump responded by setting a Tuesday midnight deadline, warning of sweeping military action against Iranian infrastructure if no agreement is reached. U.S. crude surged past $112 per barrel, with Brent trading near $115.66, up nearly 3% on the day. Despite the volatility, the S&P 500 extended its longest winning streak since January, managing to hold modest gains throughout the turbulence.

This whipsaw pattern has played out consistently over the past six weeks. According to sFOX Chief Business Officer Diana Pires, Monday's bounce reflected forced repositioning rather than any genuine shift in market fundamentals, as heavily bearish sentiment unwound quickly on the ceasefire news. Bitcoin has remained locked inside the $65,000 to $73,000 range since the conflict began, with every rally capped at the upper boundary and every dip absorbed near the lower. What unfolds before Trump's midnight deadline could finally determine which end of that range breaks first.