Bitcoin Reclaims $65K as U.S.–Iran Tensions Ease, Oil Slides 5%

Ether is outperforming bitcoin, signaling a possible shift toward altcoins, as easing tensions between the U.S. and Iran push oil prices lower.

Risk appetite returned to markets after the U.S. and Iran refrained from further military action on Sunday, triggering a drop in oil prices.

Bitcoin, the largest cryptocurrency by market capitalization, has climbed back above $65,000, gaining about 1.2% over the past 24 hours. Ether rose more than 3% to approach $1,950, while other top-10 tokens such as Solana and XRP posted gains of 1% to 2%.

WTI crude futures opened lower on Monday, falling roughly 5% to around $85, while futures linked to the Nasdaq and S&P 500 edged about 0.5% higher. Currency markets also reflected a risk-on mood, with the Australian dollar and euro strengthening against the U.S. dollar.

The U.S. and Iran paused hostilities for a second straight day, raising hopes for renewed diplomatic progress. The conflict, which began in late February, had briefly entered a fragile ceasefire in the second quarter before quickly breaking down.

Iran reportedly indicated it would continue suspending airstrikes as long as the U.S. follows suit, marking a tentative step toward another potential peace process.

“Markets are also reacting to broader macroeconomic developments,” said Vikram Subburaj, CEO of India-based, FIU-registered exchange Giottus.

He noted that Brent crude’s 4.7% drop to $92.19 has helped ease inflation concerns, though the upcoming Federal Reserve meeting on July 28–29 remains a key risk. Markets are currently pricing in a 36.3% chance of a 25-basis-point rate hike.

Subburaj added that ether’s stronger performance points to some capital rotating into alternative cryptocurrencies. However, bitcoin’s dominance, still at 58.6%, suggests a full-fledged altcoin rally has yet to take hold.

Meanwhile, some analysts are focusing on bitcoin’s historical four-year cycles, suggesting the market may be nearing a bottom ahead of the next major bull run.

Joao Wedson, founder and CEO of analytics firm Alphractal, noted that roughly 900 days have historically passed between each Bitcoin halving and the subsequent bear market bottom. With the current cycle at around day 827, he suggested bitcoin may already be forming its base, with a potential final bottom emerging within the next couple of months.