Bitcoin Jumps as U.S.-Iran Peace Deal Boosts Risk Appetite
Bitcoin surged to its peak in almost two weeks following the announcement from the US and Iran regarding their agreement to cease hostilities and reopen the Strait of Hormuz. The original cryptocurrency experienced an increase of nearly 3 percent during early trading in Asia on Monday, reaching approximately $65,400 at 9:30 a.m. in Singapore. Ether, the second-largest token, experienced an increase of up to 3.7 percent, reaching $1,731, while smaller tokens like Solana and XRP recorded even more significant gains. The rally follows a period of recent market turmoil that resulted in Bitcoin falling below $60,000, marking its lowest point since October 2024.
When Michael Saylor’s strategy, the Bitcoin-accumulating company and the token’s largest corporate buyer, disclosed this month that it sold a small portion of its holdings, it contributed to a selloff exacerbated by notable outflows in exchange-traded funds. “Key level to watch for Bitcoin is $67,000, which has a confluence of factors including volumes and moving averages,” said Pratik Kala. “The Strategy risk remains unresolved, yet the market seems to be disregarding it.” Risk appetite returned to markets following President Donald Trump’s announcement on social media that a peace deal with Iran “is now complete” and that the US would lift its blockade of the strait, a vital trade waterway.
Asian shares experienced a notable increase, while S&P 500 futures rose by approximately 1 percent. Brent crude experienced a decline of over 4 percent. Reduced hostilities in West Asia may support risk assets as Kevin Warsh prepares for his inaugural meeting as chairman of the US Federal Reserve this week. However, a signal of higher rates would likely exert downward pressure on cryptocurrencies. “This week is focused on the Fed on Wednesday,” stated Sean McNulty. “Markets anticipate a transition from easing to a neutral or hawkish stance, with a hawkish surprise posing the primary downside risk for crypto.”
