Bitcoin Nears $66K as Trump Announces Iran Peace Deal
Bitcoin (BTC) surged 2% on Monday, nearing $66,000, after former U.S. President Donald Trump announced a peace deal with Iran that would reopen the critical Strait of Hormuz. The cryptocurrency reached $65,881 on Coinbase, its highest level since June 3, according to TradingView data.
The geopolitical breakthrough immediately lifted risk assets, with Andri Fauzan Adziima, research lead at Bitrue Research Institute, calling the move a "clear risk-on reaction." "The deal removes a major geopolitical risk premium," Adziima told Cointelegraph, noting broader stability narratives and pro-crypto sentiment under the Trump administration as contributing factors.
Market Context: A Rebound From Early June Lows
Bitcoin has been clawing back losses since it briefly dipped below $60,000 on June 6. That drop came amid a broader market selloff, triggered by AI-led equity volatility and stronger-than-expected U.S. job numbers. The event resulted in $1.6 billion in liquidations across crypto markets, underscoring the fragility of investor sentiment earlier this month.
BTC’s recovery has been buoyed by selective inflows from institutional investors. BlackRock’s IBIT led the charge with $85.85 million in net Bitcoin ETF inflows on June 12, signaling renewed interest in the asset. These inflows followed a record 13-session outflow streak in early June, which had pulled $4.4 billion out of U.S. spot Bitcoin ETFs.
Despite this rebound, Bitcoin remains 48% below its all-time high of over $126,000 in October 2025. The current price action highlights the importance of the $60,000–$66,000 support zone as a critical trading range.
Geopolitics Meets Crypto
The Iran peace deal, brokered by Trump and reportedly mediated by Pakistan, includes the reopening of the Strait of Hormuz, a vital corridor for global oil shipments. Trump’s announcement came via Truth Social posts late Sunday, in which he declared the removal of a U.S. naval blockade and the "immediate and permanent end" to hostilities.
Iran has confirmed the agreement, with its deputy foreign minister stating on state television that the deal will go into effect Friday. The Strait’s reopening sent crude oil prices tumbling, with WTI Crude dropping 5% to $80 per barrel, its lowest level since March. Brent Crude followed suit, down 4.6% to $83.30.
Lower oil prices, combined with reduced geopolitical risk, are strengthening a "risk-on" narrative in markets, benefiting not just Bitcoin but also altcoins. Hyperliquid (HYPE), Zcash (ZEC), and Near Protocol (NEAR) recorded double-digit percentage gains, while the broader crypto market cap climbed 2% on Monday.
What’s Next for Bitcoin?
Traders should brace for potential volatility midweek, as the Federal Reserve is set to announce its latest interest rate decision on Wednesday. This will be the first decision under new Fed Chair Kevin Warsh, who has hinted at a dovish stance but faces pressure from rising inflation, now exceeding 4%.
The CME Fed Watch tool suggests a 96.6% probability that rates will remain unchanged at 3.5%-3.75%. However, any unexpected hawkish signals could disrupt Bitcoin’s upward momentum, given its sensitivity to macroeconomic conditions.
For now, Bitcoin’s ability to hold above $65,000 will be crucial in determining whether this rally has legs. With geopolitical risks easing, ETF inflows resuming, and oil prices stabilizing, the crypto market appears poised to capitalize on a renewed wave of optimism.