Bitcoin climbed back above the $65,000 mark on Monday, rising roughly 1.2% over 24 hours to trade at $65,355.72, as easing tensions between the United States and Iran lifted risk appetite across markets. Ether outperformed the broader crypto market, jumping more than 3% to trade near $1,950, while Solana and XRP each added 1-2%.
The rally coincided with a sharp pullback in oil prices after the U.S. and Iran held fire for a second consecutive day on Sunday, easing the geopolitical tensions that had pushed crude higher in recent sessions. WTI futures gapped lower on Monday, trading around 5% down near $85 a barrel, while Brent crude fell 4.7% to $92.19.
Bitcoin's dominance of the broader crypto market stood at 58.6%, even as Ether's outperformance pointed to renewed interest in altcoins. Traditional markets moved in tandem with the risk-on tone, with S&P 500 and Nasdaq futures both up 0.5% in early trading.
Fed decision looms as an immediate risk
Markets are now turning their attention to the Federal Reserve, with futures pricing in a 36.3% probability of a 25-basis-point rate hike. Vikram Subburaj said that "prices are also responding to macro developments," pointing to the Fed's meeting scheduled for July 28-29 as the next major catalyst for crypto and broader risk assets.
Related: Oil Slides 7% as Iran Signals It Will Halt Attacks If Pause Holds
A longer-term bottom in view?
Beyond the immediate macro backdrop, some analysts see Bitcoin's recent price action as part of a longer cyclical pattern. Joao Wedson argued that "Bitcoin is already building its price bottom, with potential final bottom forming within next two months," citing a roughly 900-day pattern that has historically separated Bitcoin halvings from bear market bottoms.
For now, the combination of a cooling Middle East conflict and falling energy prices has given crypto markets room to breathe, though traders are likely to stay cautious heading into this week's Fed decision.
