A US-Iran agreement to reopen the Strait of Hormuz sparks a 2% bitcoin rally, lifting crypto and risk assets amid falling oil prices.
Bitcoin climbed 2.1% to $65,844, reaching a two-week high after the US and Iran struck a deal to end hostilities and reopen the Strait of Hormuz. The agreement reduced geopolitical risks, pulling Brent crude down over 4% to near $83 a barrel and boosting risk assets globally.
The token had dipped to $63,722 earlier in Asian trading before the deal was announced. Bitcoin is now 9% above last week’s low of under $60,000, its weakest level since October 2024. Other cryptocurrencies followed, with Ether rising 2.5% to $1,721 and Solana gaining 3.6% to $71.
Analysts caution that bitcoin’s rebound may face resistance due to ongoing institutional demand concerns, including recent ETF outflows and sales by major holders. Despite the rally, broader market sentiment remains cautious.