Bitcoin rose to its highest levels in the last 12 days, approaching $66,000 in Monday morning trading. The price movement followed statements by US President Donald Trump suggesting that a peace deal had been brokered with Iran and that the Strait of Hormuz would be reopened.
Trump’s statements affected the markets
Trump stated in his post on the Truth Social platform on Sunday night that the agreement with the Islamic Republic of Iran was completed. The US President also stated that he approved the opening of the Strait of Hormuz without toll and the immediate lifting of the US naval blockade.
While Trump stated that the agreement was completed, he argued that the flow of oil to the region and the world would restart with the opening of the Strait of Hormuz.
According to the Associated Press, the details of the agreement between the USA and Iran were not shared at first. The implementation is expected to start after Iran’s signature. The news stated that the signature was expected to be made on Friday under the mediation of Pakistan.
Iranian Deputy Foreign Minister Kazem Gharibabadi confirmed the agreement on state television. Iran’s Supreme National Security Council Secretariat also announced that the war will end immediately and permanently on all fronts as of tonight, and the US blockade will be lifted immediately and completely.
An increase was seen in the Bitcoin and crypto market
Bitcoin rose to $65,881 in Coinbase transactions on Monday morning, according to TradingView data. Thus, the asset came this close to the 66 thousand dollar threshold for the first time since June 3. Bitcoin was making a gradual recovery after briefly falling below $60,000 on June 6.
Bitrue Research Institute research leader Andri Fauzan Adziima said that the possible agreement eliminates a significant geopolitical risk premium and increases risk appetite as uncertainty decreases. Bitrue is known as a cryptocurrency platform that offers digital asset transactions.
Adziima stated that Bitcoin rose above 65 thousand dollars, and investors turned to crypto assets again in anticipation of the easing of pressure on oil and wider stability; However, he also warned that there may be last minute problems during the signing phase of the agreement.
The total value of the overall cryptocurrency market increased by 2 percent on the day. hyperliquidSome altcoins such as , Zcash and Near Protocol experienced double-digit increases. However, Bitcoin is still 48 percent below its peak of over $126,000 in October.
Oil and Fed agenda are being watched closely
The expectation that geopolitical tensions will decrease was also reflected in oil prices. WTI crude oil fell 5 percent to just above $80 per barrel, its lowest level since early March. Brent oil similarly decreased by 4.6 percent to $83.30.
The next important headline for crypto markets will be the US Federal Reserve interest rate decision, which will be announced on Wednesday. This meeting is the first interest rate decision during the new president Kevin Warsh’s term.
According to the CME FedWatch tool, markets give a 96.6 percent probability that interest rates will be kept constant between 3.5 percent and 3.75 percent. On the other hand, inflation rising above 4 percent again causes expectations regarding monetary policy to become more cautious.
