Bitcoin approached $66,000 during early Monday trading, reaching its highest level in the past 12 days. This sudden price movement followed dramatic statements from U.S. President Donald Trump, who claimed to have brokered a peace deal with Iran and suggested that the Strait of Hormuz would reopen for oil transit.
Impact of Trump’s statements on global markets
On Sunday night, President Trump declared on the Truth Social platform that a deal had been finalized with the Islamic Republic of Iran. He added that he consented to reopening the Strait of Hormuz without any transit fees and to lifting the U.S. naval blockade with immediate effect.
As Trump explained, with the deal in place and the reopening of the Strait of Hormuz, oil would begin flowing to the region and the entire world once more.
According to reports by the Associated Press, details of the new agreement between the U.S. and Iran were initially withheld. Implementation is expected to follow Iran’s formal signature, anticipated this Friday through mediation by Pakistan.
Kazem Gharibabadi, Iran’s Deputy Foreign Minister, confirmed the agreement on state television. Additionally, the Secretariat of Iran’s Supreme National Security Council announced that, starting tonight, military actions would cease immediately across all fronts and the blockade by the United States would be lifted in full without delay.
Bitcoin and the crypto market rally
According to TradingView data, Bitcoin surged to $65,881 during Monday morning trading on Coinbase. This brought it remarkably close to the $66,000 threshold for the first time since June 3. Bitcoin had been gradually recovering after briefly dipping below $60,000 on June 6.
Andri Fauzan Adziima, head of research at the Bitrue Research Institute, assessed the development as a major reduction in geopolitical risk premium and explained that decreasing uncertainty had boosted risk appetite. Bitrue is known as a digital asset trading platform.
Adziima observed that Bitcoin’s rally above $65,000 reflected renewed investor interest in digital assets, driven by expectations of easing pressure on oil and wider market stability. He cautioned, however, that last-minute obstacles could still arise before the agreement is formally signed.
The overall cryptocurrency market capitalization grew by 2% during the day. Some prominent altcoins—including Hyperliquid, Zcash, and Near Protocol—notched double-digit percentage gains. Nevertheless, Bitcoin remains 48% below its all-time high above $126,000 recorded last October.
Spotlight on oil prices and the Federal Reserve
A widespread expectation of easing geopolitical tensions carried into oil markets. West Texas Intermediate (WTI) crude slipped 5%, settling just above $80 per barrel—its lowest level since early March. Brent crude also fell, dropping 4.6% to reach $83.30.
The next critical event for crypto markets is the U.S. Federal Reserve’s interest rate decision set for Wednesday. This meeting will be the first under new chairman Kevin Warsh and is expected to set the tone for the months ahead.
Using the CME FedWatch Tool, market participants assign a 96.6% probability to the Fed holding rates steady between 3.5% and 3.75%. However, a recent rise in inflation back above 4% is fueling more cautious expectations for the pace of monetary policy adjustments going forward.
