Bitcoin moved close to $66,000 on Monday morning after US President Donald Trump said the United States had reached a peace deal with Iran to reopen the Strait of Hormuz. The announcement helped push Bitcoin to its highest level in nearly two weeks as traders reacted to a potential drop in geopolitical risk.
The latest move came after Trump posted on Truth Social that the deal with Iran was “complete” and said the Strait of Hormuz would be reopened without tolls. He also claimed that the United States would remove its naval blockade, allowing oil shipments to resume through one of the world’s most important energy routes.
Bitcoin Jumps as Geopolitical Risk Eases
Bitcoin reached $65,881 on Coinbase during Monday morning trading, according to TradingView. That marked its highest level in 12 days and brought the asset close to reclaiming the $66,000 level for the first time since June 3.
Crypto markets have been closely watching developments around the Iran conflict, which began in February after US-Israeli strikes. Since then, Bitcoin and other digital assets have reacted sharply to headlines around war, energy markets, and possible peace negotiations.
Trump has repeatedly claimed over the past two months that a deal to end the war was close. However, his latest announcement triggered a stronger market reaction as investors moved back into risk assets.
Strait of Hormuz Reopening Boosts Market Sentiment
The Strait of Hormuz is a key route for global oil flows, making any disruption a major concern for energy markets and inflation expectations. Trump said the opening of the strait would begin after the deal is signed on Friday, allowing oil to “flow on both ends again for the region, and the world.”
Details of the US-Iran peace agreement were not immediately available. The deal is expected to be formally signed under mediation by Pakistan, with implementation dependent on Iran’s approval.
Iranian officials also confirmed the agreement. Deputy Foreign Minister Kazem Gharibabadi spoke about the deal on state television, while Iran’s Supreme National Security Council said the war on all fronts would end “immediately and permanently” and that the US blockade would be fully terminated.
Analysts See a Risk-On Move for Bitcoin
Andri Fauzan Adziima, research lead at Bitrue Research Institute, said the potential deal removes a major geopolitical risk premium from markets. He described Bitcoin’s move above $65,000 as part of a broader “risk-on” shift as uncertainty fades.
He also said traders were rotating back into crypto as oil pressure eased and market confidence improved under a pro-crypto administration. Still, he warned that last-minute issues around the signing could create more uncertainty.
Bitcoin has been gradually recovering since briefly falling below $60,000 on June 6. Despite the rebound, BTC remains 48% below its October peak of more than $126,000.
Altcoins Rally With Broader Crypto Market
The wider crypto market also moved higher, adding around 2% in total market capitalization on the day. Several altcoins outperformed Bitcoin, including Hyperliquid, Zcash, and Near Protocol.
Some of these tokens posted double-digit percentage gains as traders returned to higher-risk crypto assets. The broader rally suggests that sentiment improved not only for Bitcoin, but across the digital asset market.
Oil Prices Fall After Peace Deal Announcement
Crude oil prices dropped sharply following the news. WTI Crude fell 5% to just over $80 per barrel, reaching its lowest level since early March. Brent Crude also declined, falling 4.6% to $83.30.
Lower oil prices can support risk assets by reducing inflation pressure and easing concerns over energy supply shocks. That helped strengthen the market narrative around Bitcoin, crypto, and other speculative assets moving higher after the announcement.
Fed Decision Could Bring More Crypto Volatility
More volatility may arrive later this week as the Federal Reserve prepares to announce its next interest rate decision on Wednesday. The meeting will be the first under new Fed Chair Kevin Warsh.
Markets are currently expecting rates to remain unchanged in the 3.5% to 3.75% range. According to the CME FedWatch tool, traders see a 96.6% probability that the Fed will hold rates steady.
Warsh appears more open to interest rate cuts than his predecessor, but inflation has climbed above 4% again. That could make the case for keeping rates elevated or even considering further increases if price pressures continue.
Bitcoin Outlook Depends on Deal and Fed Signals
Bitcoin’s move near $66,000 shows how quickly crypto markets can react to geopolitical news. A confirmed US-Iran peace deal and a reopening of the Strait of Hormuz could support stronger risk appetite, especially if oil prices continue to ease.
However, traders are still watching for confirmation that the deal will be signed and implemented. Any delay, disagreement, or change in the terms could bring renewed volatility.
For now, Bitcoin has regained momentum as investors price in lower geopolitical risk, falling oil pressure, and a more stable global market outlook. The next major test for BTC could come from the Federal Reserve’s rate decision and Chair Kevin Warsh’s first policy message to markets.
