When US President Donald Trump announced a two-week ceasefire with Iran on Tuesday evening, the reaction across markets was swift and broad. Oil fell more than 10%, with West Texas Intermediate crude dropping to around $95 a barrel. U.S. equity futures rallied. And Bitcoin, which had slipped to around $68,000 earlier in the session as Trump’s deadline for Iran to reopen the Strait of Hormuz approached without a deal, surged above $72,000.

The move illustrates something the crypto market has been trying to deny for weeks: when geopolitical risk spikes hard enough, Bitcoin trades like a risk asset, not a safe haven. And it trades like a risk asset in both directions. The token is up 4% in the past 24 hours, currently sitting at…