Bitcoin experienced a notable recovery on Monday, climbing back above $66,000 after weeks of downward pressure. This resurgence was primarily fueled by two significant developments: the announcement of a peace deal between the U.S. and Iran, which boosted risk appetite across global markets, and a fresh $100 million acquisition of Bitcoin by Strategy, a leading corporate holder.
By late afternoon, Bitcoin had risen 1.8%, reaching $66,468, marking a sharp turnaround from recent lows. The U.S. and Iran confirmed that they had agreed to a memorandum of understanding aimed at ending hostilities, with a formal signing scheduled for Friday. The agreement promises an immediate cessation of hostilities and aims to reopen the strategically vital Strait of Hormuz within 30 days, alongside initiating dialogue on Iran’s nuclear program and the status of its frozen assets.
The announcement sent ripples through various markets: Wall Street indexes surged, oil prices fell over 4%, and U.S. Treasury yields dropped as investors flocked to bonds.
Strategy Expands Its Bitcoin Holdings
Strategy, recognized as the largest corporate holder of Bitcoin, disclosed its acquisition of 1,587 BTC between June 8 and June 14, averaging around $63,024 per coin for a total investment of approximately $100 million. This move increases their total Bitcoin holdings to 846,842 BTC, valued at around $56 billion based on current prices. Funding for this purchase came from the sale of 1.73 million Class A shares, generating about $209 million in proceeds. Co-founder Michael Saylor noted that the average purchase price for their Bitcoin holdings is $75,656 per coin, with total expenditures amounting to roughly $64.1 billion.
ETF Outflows Moderate but Persist
In another notable trend, institutional outflows from Bitcoin spot ETFs have eased, with net outflows reported at $315.8 million last week. This figure, while still negative, represents a significant decrease from the over $1 billion in outflows seen in the previous four weeks. Analysts suggest that a shift toward AI stocks has drawn institutional investments away from crypto assets, contributing to the ongoing outflow trend.
Analysts Weigh In on Price Movements
Crypto analyst Ali Martinez observed that Bitcoin has breached the crucial $64,360 resistance level, suggesting that momentum could push the price toward $67,630 in the near term. Meanwhile, analyst Ardi, who has maintained a bearish outlook, remarked that Bitcoin’s ability to reclaim $66.5K is a noteworthy event during a late-stage bear market cycle. He noted that historically, reclaiming a range low after breaking below it is a rare occurrence.
While the current price movement is positive, Bitcoin remains below its longer-term moving averages, and traders are keen to see further confirmation of a market bottom before fully committing to bullish positions.
