Bitcoin on the verge of almost $66,000: How geopolitics affects cryptocurrencies

Bitcoin on the verge of almost $66,000: How geopolitics affects cryptocurrencies

Financial markets have been on the brink of tension and uncertainty in recent weeks, not only due to domestic economic issues, but also due to international events. However, the latest news of a possible peace deal between the US and Iran brought a significant positive reaction to cryptocurrency markets, pushing Bitcoin to its highest values ​​in the last two weeks.

Trump's call to open the Strait of Hormuz stirs markets

In his message on the Truth Social platform on Sunday, US President Donald Trump announced that a deal had been reached with Iran that will allow the "free opening of the Strait of Hormuz" and remove the US Navy blockade of this strategic area. The news immediately affected oil prices and stock indices, but the cryptocurrency scene has earned special attention.

Bitcoin in response to geopolitical certainty

The market reaction was surprisingly quick and positive. Bitcoin barely broke above $65,800 in early trading on Monday, moving closer to a two-week high. The highest since June 3 was just below $66,000, according to data from TradingView. The rally reflects not only expectations of an end to tensions in the region, but also investor confidence in the long-term stability of cryptocurrencies in uncertain times.

Why is this rally so important?

Andri Fauzan Adziima of Bitrue Research Institute explained that a potential deal removes one of the largest geopolitical risk premiums, making a risk asset like Bitcoin more attractive. “Bitcoin broke through $65,000, driven by traders returning to cryptocurrencies amid lower oil pressure and broader stability under a pro-cryptocurrency administration,” the analyst added.

Uncertainty and challenges ahead

While the news of a possible deal is encouraging, it should be noted that the details of the agreement are not yet fully known and its signing may be subject to further negotiations expected this Friday. Iranian Deputy Foreign Minister Kazem Gharibabadi confirmed that a deal is within reach, while Iranian official sources speak of an immediate end to the war and blockades.

Impact on the broader market and oil prices

In addition to cryptocurrencies, oil prices also saw significant declines, reflecting the expected easing of tensions in the region. WTI crude fell 5% to its lowest level since early March, while Brent crude approached $83 per barrel.

What’s next?

Wednesday could bring more volatility as the Fed plans to announce interest rates. Inflation above 4% and expectations of cutting rates or keeping them at current levels could influence further market developments.

Conclusion: Geopolitics as a Key Player

The news of a possible US-Iran deal has shown how much cryptocurrencies are influenced by global events. Bitcoin, often referred to as digital gold, continues to confirm its role as a safe haven in uncertain times. Whether it is geopolitical tensions, economic challenges or macroeconomic changes, cryptocurrency markets are increasingly interconnected with global events.

*This is not an investment recommendation.

The Coingarage Team