Crypto Market Rebounds Amidst Israel-Iran Ceasefire, DeFi Liquidations Again Surpass CeFi Liquidations
President Trump’s announcement of a ceasefire between Israel and Iran has led to a reversal in cryptocurrency prices after a recent downtrend.
Sponsored- Published: Jun 24, 2025 at 20:40
- Edited: Jun 24, 2025 at 21:20
Market crashes and widespread liquidations have accompanied recent geopolitical tensions. However, an announcement from U.S. President Donald Trump on June 23rd stating that a ceasefire between Israel and Iran had come into effect triggered a spike in crypto prices.
“CONGRATULATIONS TO EVERYONE! It has been fully agreed by and between Israel and Iran that there will be a Complete and Total CEASEFIRE (in approximately 6 hours from now, when Israel and Iran have wound down and completed their in progress, final missions!), for 12 hours, at which point the War will be considered, ENDED!”, the President stated in a social media post on Monday evening.
The global cryptocurrency market reacted virtually immediately as the price of Bitcoin retraced from weekend lows of below $100,000 to over $105,000 as at the time of writing.
Investor Sentiment
This unexpected move appeared to reduce traders' caution, prompting a shift back into riskier assets such as cryptocurrencies.
The Crypto Fear and Greed Index from CoinMarketCap has climbed to 47, up from a ‘fearful’ 37 just a day earlier as the broader markets reacted to the news.
This sentiment was also reflected in the total cryptocurrency market capitalization, which increased from $3.2 trillion to almost $3.4 trillion at the time of writing.
The crypto market’s current momentum now hinges on how the ceasefire unfolds in the coming days. If Iran and Israel maintain open oil shipping routes, the bullish trend is likely to continue. However, any renewed escalation might push Bitcoin below $100,000 and cause a sharp drop in the total crypto market cap.
DEXs Outpacing CEXs?
A significant shift is unfolding in Solana’s trading ecosystem. Decentralized exchanges (DEXs) are processing more liquidations than centralized exchanges (CEXs), marking a new phase in the evolution of Solana’s DeFi infrastructure.
President Trump’s ceasefire announcement triggered the second major liquidation event in two days, with Solana onchain perpetuals once again recording higher liquidation volumes than centralized exchanges for $SOL based pairs.
According to data from Ranger Finance and Coinglass, $SOL onchain perpetual contracts recorded approximately $31 million in liquidations, compared to approximately $28 million seen on centralized exchanges. This surge underscores the growing maturity of Solana’s DeFi ecosystem. Traders who once relied mainly on centralized platforms like Binance and Coinbase for leveraged positions are now increasingly choosing onchain alternatives that offer transparency and composability.
If this trend continues, DeFi perpetuals could soon rival the liquidity and influence of their centralized counterparts, not only on Solana but throughout the broader Web3 ecosystem.
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