Bitcoin reaches nearly $65,800 following a US-Iran agreement, easing oil supply concerns and boosting risk assets.
Agreement Reopens Strait of Hormuz, Easing Geopolitical Tensions
Bitcoin has surged to approximately $65,800, its highest level in nearly two weeks, following a peace agreement between the US and Iran that reopened the Strait of Hormuz. This development has alleviated concerns regarding energy supplies, contributing to a significant drop in Brent crude prices, which fell over 4% to around $83 per barrel.
The cryptocurrency experienced a 2.1% increase within 24 hours after reaching a low of about $63,722 early in Asian trading. This rally positions Bitcoin nearly 9% above a recent dip below $60,000, which had been its lowest point since October 2024.
Other cryptocurrencies also benefited from the positive sentiment, with Ether rising 2.5% to $1,721, Solana increasing by 3.6% to $71, and XRP gaining 3.2% to $1.19. Additionally, Hyperliquid's HYPE surged by 7.5% to nearly $65, while both BNB and Dogecoin saw gains exceeding 1%.
The announcement of the peace deal was made by Pakistani Prime Minister Shehbaz Sharif, with further confirmations from President Donald Trump and Iranian state media, stating that the Strait of Hormuz would reopen following the signing of the agreement.
While the full details of the agreement remain undisclosed, the implications for the market are evident. The easing of geopolitical tensions has led to a resurgence in global risk assets, including cryptocurrencies and Asian equities, which saw a rise of more than 3%. The S&P 500 futures also climbed by 1.2%, while the US dollar weakened against major currencies.
Despite the positive momentum, analysts caution that Bitcoin's resurgence may be limited by ongoing concerns regarding institutional demand. Recent data revealed that Strategy sold 32 bitcoins to fund dividends, raising questions about the sustainability of demand. Additionally, ETF outflows have added pressure, suggesting that the impact of the peace agreement may not be enough to fully restore confidence in the cryptocurrency market.
