Crypto market rebounds as Trump hints at Russia-Ukraine ceasefire, risk sentiment improves

• President Trump's statement on a possible Russia-Ukraine ceasefire on Monday sparked optimism across global markets.
• Easing geopolitical tensions lifted investor confidence, driving a mild recovery in major cryptocurrencies.
• Despite a recovery, crypto markets remain cautious, with future momentum dependent on how credible and concrete the ceasefire talks appear.

US President Donald Trump's statement on a possible Russia-Ukraine ceasefire on Monday sparked optimism across global markets. The news of easing geopolitical tensions lifted investor confidence, driving a mild recovery in major cryptocurrencies. Despite a slight recovery, market participants remain watchful, with future momentum likely dependent on how credible and concrete the ceasefire talks appear.

Investor confidence rises as geopolitical tensions ease

US President Donald Trump announced via Truth Social post on Monday the possibility of a ceasefire between Russia and Ukraine. Trump said he had a two-hour call with President Vladimir Putin of Russia.

"I believe it went very well…" said Trump and continued, "Russia and Ukraine will immediately start negotiations toward a Ceasefire and, more importantly, an END to the War."

Trump emphasized that Russia is eager to engage in large-scale trade with the US after the war ends, which he supports, citing massive economic potential. He noted that Ukraine could benefit significantly from future trade and reconstruction efforts post-conflict.

Trump claimed he briefed key world leaders following his call with Putin, including President Zelenskyy, Ursula von der Leyen, Emmanuel Macron, Giorgia Meloni, Friedrich Merz, and President Stubb.

Trump ended: "The Vatican... would be very interested in hosting the negotiations. Let the process begin!"

This news of easing geopolitical tensions lifted investor confidence, driving a mild recovery in major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH) and Cardano (ADA) during the New York trading session after its fall in the early Asain session on Monday. 

The further optimism around the ceasefire negotiations and reduced geopolitical risk will likely positively impact crypto markets. This could cause BTC to retest its all-time high levels of $109,588, and altcoins are likely to follow suit, with Ethereum, Solana (SOL), and others benefiting from a risk-on environment.

However, the market's reaction will hinge on the perceived credibility of the negotiations. The bullish trend could strengthen if news emerges later this week confirming the start of talks at the Vatican or Ukraine and Russia release positive statements. 

Conversely, signs of stalling could trigger a pullback and risk-off sentiment, which doesn't bode well for cryptocurrency prices.