Bitcoin Rebounds as US-Iran Deal Eases Market Fears, Crypto Market Rallies

Bitcoin climbed to its highest level in nearly two weeks after reports emerged that the United States and Iran had reached an agreement to end hostilities and reopen the Strait of Hormuz, easing concerns over global energy supplies and boosting investor sentiment across financial markets.

According to CoinDesk data, Bitcoin traded around $65,844 on Monday, gaining 2.1% over the previous 24 hours. The leading cryptocurrency had earlier fallen to approximately $63,722 during Asian trading hours before news of the agreement triggered a broader market recovery.

The latest rally places Bitcoin roughly 9% above the sub-$60,000 level it briefly touched last week, marking a rebound from its lowest price since October 2024. The improvement in market sentiment extended beyond Bitcoin, with major altcoins also posting gains. Ether rose 2.5% to $1,721, Solana advanced 3.6% to $71, and XRP increased 3.2% to $1.19. Hyperliquid’s HYPE token led the market higher, surging 7.5% to nearly $65, while BNB and Dogecoin each gained more than 1%.

Traditional markets also reacted positively to the geopolitical development. Brent crude oil fell more than 4% toward $83 per barrel as traders reduced the risk premium that had supported prices for months. Asian equities rallied sharply, with Japan’s Nikkei 225 moving toward a record close, while S&P 500 futures rose 1.2%. The U.S. dollar weakened against major currencies.

Pakistani Prime Minister Shehbaz Sharif first announced the agreement, followed by confirmation from President Donald Trump and Iranian state media. Trump stated that the Strait of Hormuz is expected to reopen on Friday once the deal is officially signed.

The easing of tensions could benefit risk assets such as cryptocurrencies by lowering oil prices and reducing expectations for prolonged high interest rates. However, some challenges remain. Earlier this month, Strategy revealed it sold 32 BTC to fund preferred share dividends, raising concerns among investors who had assumed the company would continue holding its Bitcoin reserves indefinitely.

In addition, recent Bitcoin ETF outflows have highlighted ongoing questions about institutional demand. While the US-Iran agreement has fueled a short-term risk-on rally, market participants will closely monitor whether institutional inflows return or if Bitcoin’s recovery loses momentum once the geopolitical relief is fully reflected in asset prices.