Bitcoin Hits Two-Week High Above $65,500 as US–Iran Deal Sends Oil Prices Lower

A peace agreement to reopen the Strait of Hormuz has effectively removed a geopolitical risk premium from oil markets and redirected flows back into risk assets.

Bitcoin surged to a near two-week high after the United States and Iran reached an accord to end hostilities and restore shipping through the Strait of Hormuz, easing energy-supply concerns that had weighed on markets for months.

The cryptocurrency traded around $65,844 on Monday, gaining about 2.1% over 24 hours. It had briefly dipped to roughly $63,722 during early Asian trading before reversing sharply on the deal headlines, according to CoinDesk data.

The move leaves Bitcoin roughly 9% above last week’s sub-$60,000 low, which marked its weakest level since October 2024.

The broader crypto market also rallied. Ether rose 2.5% to $1,721, Solana climbed 3.6% to $71, and XRP added 3.2% to $1.19. Hyperliquid’s HYPE led gains, jumping 7.5% to nearly $65, while BNB and Dogecoin both posted gains of over 1%.

In traditional markets, Brent crude dropped more than 4% to around $83 per barrel as traders unwound the geopolitical risk premium built up since late February. Asian equities surged more than 3%, with Japan’s Nikkei 225 on track for a record close. S&P 500 futures gained 1.2%, while the U.S. dollar weakened against major currencies.

The agreement was first announced by Pakistani Prime Minister Shehbaz Sharif, followed by confirmation from U.S. President Donald Trump and Iranian state media. Trump indicated the Strait of Hormuz would reopen on Friday after formal signing.

Although the full text of the deal has not been released, its broad framework had already been circulating in markets for several days.

Bitcoin’s drop below $60,000 last week was driven by two reinforcing forces: escalating Iran tensions pushed oil higher, which in turn strengthened expectations for tighter monetary policy, pulling liquidity out of risk assets including crypto. The reversal in oil prices has now flipped that dynamic.

However, one important pressure point remains. Strategy’s recent disclosure that it sold 32 bitcoin to cover preferred dividend obligations triggered a sharp reaction, highlighting how much of the market’s support had been tied to expectations of uninterrupted corporate accumulation.

ETF outflows have also weighed on sentiment, and neither of these structural demand concerns is resolved by a geopolitical easing. The key question now is whether institutional inflows return alongside the risk-on move, or whether Bitcoin’s recovery fades once the Iran-driven relief rally is fully priced in.