BTC Approaches $66K Following Trump's Announcement of Iran Peace Agreement
President Donald Trump announces an agreement between the United States and Iran for unrestricted access through the Strait of Hormuz, propelling Bitcoin to its highest level in two weeks.
During Monday's morning trading session, Bitcoin approached the $66,000 mark following President Trump's announcement that the United States had successfully negotiated a peace agreement with Iran, which would result in the reopening of the Strait of Hormuz.
"The deal with the Islamic Republic of Iran is now complete. Congratulations to all!" Trump posted on his Truth Social platform late on Sunday.
"I hereby fully authorize the toll-free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade," Trump said. "Ships of the World, start your engines. Let the oil flow!"
"With the opening of the Strait upon the signing of the deal on Friday [...] oil will flow on both ends again for the region, and the World!" he said in a separate post.
Over the past two months, Trump has repeatedly suggested that an agreement to conclude the conflict was imminent, and cryptocurrency markets have responded to developments related to the Iran conflict since its commencement in February following strikes conducted by the US and Israel.
Financial markets responded favorably to Trump's most recent announcement, with Bitcoin (BTC) climbing to $65,881 on Coinbase during Monday's morning session, as reported by TradingView. This represents the highest trading level for the digital asset over the past 12 days, as it had not exceeded $66,000 since June 3.
Andri Fauzan Adziima, the research lead at Bitrue Research Institute, told Cointelegraph that the potential deal "removes a major geopolitical risk premium, triggering a clear risk-on move as uncertainty fades."
"Bitcoin has broken above $65,000, fueled by traders rotating back into crypto amid lower oil pressure and a broader stability narrative under a pro-crypto administration," he added, but cautioned that there could be "last-minute signing issues" with the deal.
Specific details regarding the agreement between the United States and Iran were not immediately accessible, and implementation would not occur until Iran provides its signature, which is anticipated on Friday with Pakistan serving as mediator, according to reporting by the Associated Press.
Iran's deputy foreign minister, Kazem Gharibabadi, confirmed the agreement on state television while the secretariat of Iran's Supreme National Security Council said the war on all fronts "will end immediately and permanently beginning tonight" and that the US blockade "will be terminated immediately and in full."
Since briefly dipping below $60,000 on June 6, Bitcoin has been experiencing a gradual upward trend; nevertheless, it continues to trade 48% lower than its peak valuation of over $126,000 reached in October.
The wider cryptocurrency market also experienced gains with total capitalization increasing by 2% throughout the day, while multiple altcoins, including Hyperliquid (HYPE), Zcash (ZEC) and Near Protocol (NEAR) were outperforming, some with double-digit percentage gains.
Crude oil prices also experienced notable movement, with WTI Crude declining 5% to reach its lowest point since early March at slightly above $80 per barrel, while Brent Crude mirrored the move, dropping 4.6% to $83.30.
More volatility may be ahead
Additional volatility could impact cryptocurrency markets on Wednesday as the Federal Reserve is set to announce its interest rate decision, marking the first such determination under newly appointed chair Kevin Warsh.
The recently appointed central bank chair seems more open to implementing cuts, although rising inflation, which has climbed above 4% once again, provides justification for potential rate increases.
The CME Fed Watch tool currently predicts a 96.6% probability that rates will remain unchanged at 3.5% to 3.75%