Analyst Predicts ‘Massive Bull Rally’ if US-Iran Peace Deal Is Signed
Moonrock Capital founder Simon Dedic has said that if the United States and Iran actually sign a peace deal on June 19 as has been reported, it could mark the start of a major rally across risk assets, considering how they behaved when past conflicts ended.
His argument is that, as the most volatile major asset class, crypto would be the first to benefit once the macro pressure from the situation in the Middle East eases.
The Case for a Crypto Rally
In a post on X published on June 15, Dedic started off with a disclaimer, saying that trying to predict anything based on what US President Donald Trump says or does was “a fool’s game.”
He compared the head of state’s unpredictability to that of his Official Trump meme coin (up over 20% in the past week), but he argued that if indeed the Iran deal gets signed as planned this coming Friday, the setup looks a lot like previous moments when conflict-related uncertainty cleared out of markets all at once.
For example, when the Korean War ended, the S&P 500 gained 44% in the following year, according to Dedic. It was the same after the Iraq war, with the S&P 500 rising 25% in the year after the guns went quiet. The analyst also pointed out that in 19 out of 20 conflicts that came after the Second World War, markets took an average of just 28 days to fully recover the minute hostilities stopped completely.
Per his assessment, the Iran war has been the biggest reason why risk appetite has been so low lately. He noted that Bitcoin (BTC) was sitting near $65,000, down almost 48% from its all-time high, with many altcoins faring even worse. But if that overhang gets removed, Dedic expects crypto to reprice quickly, considering how closely it follows changes in risk sentiment.
“Everyone who’s been looking like an idiot for the last few months will soon look like a genius,” he wrote.
Trump confirmed the “Great Deal” in a post on Truth Social, with market commentary account The Kobeissi Letter saying that the proposed agreement would extend the current ceasefire, reopen the Strait of Hormuz, and kick off negotiations around Iran’s nuclear program. It will also reportedly lead to discussions regarding the lifting of sanctions against the Islamic Republic as well as unfreezing its funds, including about $1 billion in crypto seized under Operation Economic Fury.
Markets Are Already Rebounding
Indeed, there was a reaction in the market soon after Trump’s post, with S&P 500 futures going up 0.8% and their Nasdaq counterparts gaining 1.3%, while BTC moved to its highest level in almost two weeks.
Ethereum (ETH) also climbed back above $1,800 after languishing below that level since June 5, only briefly coming up for air on June 9 when it hit $1,700, per CoinGecko data, before promptly diving back under.
Others like XRP, Solana, and Cardano also posted notable results following news of the peace deal, but among the majors, Hyperliquid had the best uptick, with its price just above $68 at the time of writing representing a 10% increase in one day.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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