Bitcoin Reclaims $65,000 as Trump Announces Peace With Iran

Bitcoin approached the $66,000 level during Monday trading after US President Donald Trump announced that a peace agreement between the United States and Iran had been finalized, including plans to reopen the Strait of Hormuz.

In a series of posts on Truth Social late Sunday, Trump declared that negotiations had concluded successfully. “The deal with the Islamic Republic of Iran is now complete. Congratulations to all!” He also stated: “I hereby fully authorize the toll-free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade.” “Ships of the World, start your engines. Let the oil flow!”

In another message, Trump added: “With the opening of the Strait upon the signing of the deal on Friday [...] oil will flow on both ends again for the region, and the World!” The announcement follows months of speculation surrounding a potential agreement, with Trump repeatedly signaling that a breakthrough was imminent since the conflict began in February following US-Israeli military strikes.

Crypto markets rally on reduced geopolitical risk

Investors reacted positively to the latest developments, pushing Bitcoin to an intraday high of $65,881 on Coinbase, according to TradingView data. The move marked Bitcoin’s highest price in nearly two weeks, with the asset not having traded above $66,000 since June 3.

Andri Fauzan Adziima, research lead at the Bitrue Research Institute, said the potential agreement could remove a significant source of uncertainty from global markets. “The potential deal removes a major geopolitical risk premium, triggering a clear risk-on move as uncertainty fades.”

He added: “Bitcoin has broken above $65,000, fueled by traders rotating back into crypto amid lower oil pressure and a broader stability narrative under a pro-crypto administration.” Despite the optimism, Adziima cautioned that negotiations are not yet finalized and that unexpected complications could still emerge before the agreement is officially signed.

At the time of publication, complete details of the proposed agreement had not been released. According to reports, Iran is expected to formally sign the deal on Friday with mediation from Pakistan. Iranian Deputy Foreign Minister Kazem Gharibabadi confirmed the agreement on state television, while the country's Supreme National Security Council stated that hostilities across all fronts would end immediately and that the US blockade would be fully lifted.

Oil falls while investors await Fed decision

Bitcoin has been gradually recovering since briefly dropping below $60,000 on June 6. However, despite the recent rebound, the cryptocurrency remains approximately 48% below its October peak above $126,000. The broader crypto market also benefited from the improved sentiment, with total market capitalization increasing by around 2% on the day.

Several altcoins outperformed Bitcoin, including Hyperliquid (HYPE), Zcash (ZEC) and Near Protocol (NEAR), with some posting double-digit percentage gains. Meanwhile, energy markets moved in the opposite direction. Expectations that the Strait of Hormuz could reopen weighed on oil prices, with West Texas Intermediate (WTI) crude falling 5% to just above $80 per barrel, its lowest level since early March. Brent crude also declined, losing 4.6% to trade around $83.30 per barrel.

Investors are now turning their attention to Wednesday’s Federal Reserve meeting, which could introduce another wave of volatility across financial markets. The meeting will be the first chaired by new Federal Reserve Chair Kevin Warsh. While Warsh is generally viewed as more open to interest-rate cuts than his predecessor, inflation remains above 4%, strengthening arguments for maintaining or even increasing rates.

According to the CME FedWatch Tool, markets currently assign a 96.6% probability that the Federal Reserve will leave rates unchanged within the 3.5% to 3.75% range.

Sources:

https://apnews.com/article/iran-us-war-ceasefire-deal-e0a9e4e1152ea8da10ea066ad174a23a

https://cointelegraph.com/news/bitcoin-closes-in-on-66k-as-trump-signals-deal-with-iran

https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html

https://truthsocial.com/@realDonaldTrump/posts/116750587569914985

https://truthsocial.com/@realDonaldTrump/posts/116750814874397998