Bitcoin (BTC) saw a remarkable surge to $65,881 on Monday, marking its highest price in 12 days following the announcement of a peace agreement between the United States and Iran. This accord promises to end hostilities and reopen the crucial Strait of Hormuz within 30 days, a development that has sent ripples of optimism through the crypto community.
The latest price surge brings Bitcoin tantalizingly close to the $66,000 mark, a level it has not surpassed since June 3. However, it remains approximately 48% below its all-time high of over $126,000, achieved back in October 2025.
This peace deal was heralded by US President Donald Trump, who took to Truth Social to announce the completion of the agreement. He indicated that the reopening of the Strait of Hormuz would facilitate a renewed flow of oil in the region, a sentiment echoed in his enthusiastic remark: “Ships of the World, start your engines. Let the oil flow!”
Iran’s deputy foreign minister, Kazem Gharibabadi, confirmed the agreement on state television, stating that the war would end immediately and the US blockade would be lifted entirely. This geopolitical shift is seen as a significant factor driving Bitcoin’s current rally.
Crypto analyst Ted Pillows had noted earlier that a breakthrough above the $65,000 threshold could initiate a rally of 6% to 8%. His prediction came to fruition as Bitcoin climbed past this critical level shortly after the peace announcement.
As the deal awaits finalization, expected to be signed on Friday with mediation from Pakistan, analysts caution that last-minute complications could arise. Nevertheless, the market has reacted positively, with Andri Fauzan Adziima from Bitrue Research Institute stating that the deal removes a major geopolitical risk premium, triggering a risk-on sentiment among traders as uncertainties dissipate.
The broader cryptocurrency market responded enthusiastically, recording a 2% increase in total capitalization on the same day. Many altcoins outperformed Bitcoin, including Hyperliquid (HYPE), Zcash (ZEC), and Near Protocol (NEAR), with some posting double-digit gains.
In parallel, oil markets reacted sharply to the news, with West Texas Intermediate (WTI) crude oil dropping 5% to just above $80 per barrel, its lowest price since early March. Brent Crude also fell by 4.6%, settling at $83.30.
Despite the positive momentum for Bitcoin, the market is still grappling with ongoing outflows from Bitcoin exchange-traded funds (ETFs). Last week, spot Bitcoin ETFs recorded $315.8 million in outflows, a decrease from over $1 billion in the preceding four weeks, but nonetheless marking the fifth consecutive week of net outflows from institutional products.
Bitcoin’s recent fluctuations highlight its resilience, especially after dipping below $60,000 on June 6 before recovering. As the Federal Reserve is set to announce its next interest rate decision, speculation surrounds the potential for rates to remain unchanged at 3.5%–3.75%, as indicated by the CME Fed Watch tool showing a 96.6% probability.
As the dust settles on this significant geopolitical development, Bitcoin’s trajectory will likely continue to be influenced by these intertwining factors, leaving traders and investors eagerly watching for further price movements.
