The crypto market recovered for the second straight day, rising 2.1% over the past 24 hours to $2.45 trillion on Tuesday.

Bitcoin (BTC), the bellwether asset, rose 2.4% to a six-day peak of $69,000. Ethereum (ETH) price was up 4.2%, back above $2,100, while other major crypto assets such as BNB (BNB), XRP (XRP), Solana (SOL), and Dogecoin (DOGE) posted gains between 1-3%.

Some of the best performers of the day were Algorand (ALGO), Stable (STABLE), and Zcash (ZEC), which led gains of 20.5%, 16%, and 8% each.

Crypto market rises as Trump’s Iran update fuels risk-on sentiment

The latest market recovery comes as reports suggest that U.S. President Donald Trump will provide an important update on the ongoing tensions with Iran later at 9 PM ET today. This anticipation comes just a day after reports emerged that Trump was considering ending the U.S. war with Iran in the Middle East, even if the Strait of Hormuz remains closed.

The blockade in the key maritime corridor has led oil prices to surge to multi-year levels, which contributed a big part to deteriorating investor demand for risk assets as they flee to safe-haven assets such as gold and U.S. equities.

Meanwhile, a contrasting narrative came from a report by the Wall Street Journal, which indicated that several nations, including the UAE and Saudi Arabia in the Gulf stream, are pressuring the U.S. to continue its war against Iran as they try to force open the strait.

The Iranian government, for its part, has stated that the country will end the war only if certain conditions are met; these include full compensation for the wartime damages incurred.

All this combined makes Trump’s speech today a high-stakes event for global markets. Investors are likely pricing in Trump’s potential plan of looking into ending the war, although details of his speech today remain sparse at the time of writing.

Notably, the initial impact of the potential peace talks has already been seen in the energy markets as crude oil fell lower today. At press time, West Texas Intermediate (WTI) crude oil and Brent were both down 4% each, moving below $100.

Short liquidations and ETF inflows add momentum to rally

The crypto market recovery has triggered a massive short squeeze as short sellers were caught off guard. Data from CoinGlass shows that over $200 million in short positions were liquidated in the past 24 hours across leveraged markets. Such a trend could continue to accelerate the bullish momentum if the resistance levels are broken.

Meanwhile, crypto ETFs also seem to have played a part in today’s gains. Notably, spot Bitcoin ETFs recorded $117 million in net inflows over the past day, extending their inflow streak to the second day, while their Ethereum counterparts drew in $31 million on the day.