Bitcoin climbed to its highest level in nearly two weeks after the United States and Iran announced a provisional agreement aimed at ending hostilities and reopening the Strait of Hormuz, triggering a broad recovery across global risk assets.
The world’s largest cryptocurrency rose about 3% during Asian trading to around $65,400, while other digital assets posted even stronger gains. Ether, the second-largest cryptocurrency by market value, advanced as much as 3.7% to approximately $1,731, while Solana and XRP outperformed Bitcoin as investors increased exposure to higher-risk assets.
The rebound follows a turbulent period for cryptocurrency markets that recently pushed Bitcoin below the $60,000 mark, its lowest level since October 2024. The decline was driven by a combination of factors, including sizeable outflows from spot Bitcoin exchange-traded funds (ETFs) and concerns surrounding sales by Strategy, the world’s largest corporate holder of Bitcoin.
Although Strategy disclosed only a modest reduction in its holdings, the move amplified investor concerns and contributed to broader market weakness. ETF flows have become an increasingly important gauge of institutional sentiment since the launch of spot Bitcoin funds, with recent outflows weighing on prices and highlighting the growing role of professional investors in cryptocurrency markets.
Investor confidence improved after the agreement between the U.S. and Iran
Investor confidence improved after U.S. President Donald Trump announced that an agreement with Iran had been reached and that shipping through the Strait of Hormuz would resume, easing concerns over a prolonged disruption to one of the world’s most important trade corridors.
The agreement helped reverse a recent flight from risk assets that had dominated markets during the conflict. Investors moved back into equities, cryptocurrencies and other growth-oriented assets as fears of a prolonged interruption to global energy supplies began to recede.
The improvement in sentiment extended well beyond digital assets. Asian equities advanced, while futures linked to the S&P 500 gained roughly 1%. Brent crude oil, meanwhile, fell more than 4% as traders priced in reduced geopolitical risk and expectations of smoother energy flows through the Gulf.
Notably, gold also rebounded sharply despite weaker oil prices, an unusual combination that suggests investors remain cautious about the broader geopolitical and economic outlook even as immediate tensions appear to be easing. The simultaneous rise in both Bitcoin and gold reflects continuing demand for alternative stores of value amid uncertainty surrounding global growth, inflation and monetary policy.
Pratik Kala, portfolio manager at digital-asset hedge fund Apollo Crypto, said investors are closely watching the $67,000 level for Bitcoin, where several technical indicators converge, including trading volumes and key moving averages. While concerns surrounding Strategy’s holdings have not entirely disappeared, he noted that the market appears increasingly willing to look beyond those risks.
Attention is now shifting to the U.S. Federal Reserve’s upcoming policy meeting, the first under Chairman Kevin Warsh. Investors are assessing whether easing geopolitical tensions and lower energy prices could influence the outlook for inflation, interest rates and broader financial conditions.
Analysts caution that cryptocurrencies remain highly sensitive to changes in monetary policy expectations. Any indication that the Federal Reserve intends to maintain elevated borrowing costs for longer could weigh on digital assets, which generally benefit from lower interest rates and stronger liquidity conditions.
Sean McNulty, Head of APAC Derivatives Trading at FalconX, said markets are now focused almost entirely on the Federal Reserve’s decision. While expectations for aggressive monetary easing have moderated, traders remain alert to any hawkish signals that could tighten liquidity and pressure risk assets.
The latest rally also highlights Bitcoin’s evolution from a largely retail-driven speculative asset into an increasingly institutionalised component of global investment portfolios. As participation by asset managers, hedge funds and corporate investors has grown, Bitcoin has become more closely linked to broader macroeconomic themes, including interest-rate expectations, geopolitical developments and global liquidity conditions.
For now, easing tensions in the Middle East have provided a welcome boost to market confidence. Whether the rally can be sustained, however, will depend less on geopolitics and more on the trajectory of monetary policy and institutional capital flows in the weeks ahead.
Related news:
Bitcoin Slides as Iran War Triggers Global Crypto Liquidations
Bitcoin Slides Toward $65,000 as Trade Policy Uncertainty Jolts Risk Assets
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