Bitcoin rallies to two-week high after US-Iran Hormuz deal

Bitcoin climbed to its highest level in nearly two weeks after the US and Iran said they reached an agreement to end hostilities and reopen the Strait of Hormuz.

The original cryptocurrency rose nearly 3% in early Asia trading Monday and was around $65,400 at 9:30 a.m. in Singapore. Ether, the second-largest token, was up as much as 3.7% to $1,731, while smaller tokens such as Solana and XRP saw larger gains.

The rally comes after recent market tumult saw Bitcoin dip below $60,000 and hit its lowest level since October 2024. When Michael Saylor’s Strategy, the Bitcoin-accumulating company and the token’s largest corporate buyer, revealed this month that it sold a tiny fraction of its holdings, it helped spark a selloff worsened by significant outflows in exchange-traded funds.

“Key level to watch for Bitcoin is $67,000, which has a confluence of factors including volumes and moving averages,” said Pratik Kala, a portfolio manager at the digital-asset hedge fund Apollo Crypto. “The Strategy risk has not been cleared, but the market is overlooking it.”

Risk appetite returned to markets after President Donald Trump said on social media that a peace deal with Iran “is now complete” and that the US would end its blockade of the strait, a critical trade waterway.

Asian shares jumped, and S&P 500 futures were up roughly 1%. Brent crude fell more than 4%.

Reduced hostilities in the Middle East may help buoy risk assets ahead of Kevin Warsh’s first meeting as chairman of the US Federal Reserve this week. However, a signal of higher rates would likely weigh on cryptocurrencies.

“This week is all about the Fed on Wednesday,” said Sean McNulty, Asia-Pacific derivatives trading lead at FlaconX. “Markets expect a shift from easing to neutral/hawkish, and a hawkish surprise is the main downside risk for crypto.”

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