Bitcoin rose above $65,000 on Monday as the announcement of a peace deal between the United States and Iran lifted sentiment across global financial markets. The cryptocurrency traded at $65,695 in early session, up 2.08 percent from Sunday, recovering from a period of sustained selling that had seen it fall below $61,000 last week.

The move reflects a broader shift in risk appetite following President Trump’s confirmation that the Strait of Hormuz would reopen and that the naval blockade of Iran was being removed. Cryptocurrency markets tend to move in the same direction as equity markets during large geopolitical events, and the prospect of falling oil prices and reduced inflation risk gave investors more appetite for speculative assets.

Bitcoin had been under pressure since mid-May, when geopolitical uncertainty, rising oil prices and inflation concerns drove investors toward safer holdings. Spot Bitcoin exchange-traded funds recorded outflows exceeding $4.75 billion between mid-May and early June as institutional investors reduced their cryptocurrency exposure. The reversal on Monday suggested some of that flow was beginning to return.

The Federal Reserve‘s June meeting, scheduled for June 16 and 17, is also on traders’ minds. The central bank’s benchmark rate currently sits at 3.5 to 3.75 percent, and markets are pricing a 99 percent probability that rates remain unchanged. Falling oil prices improve the inflation outlook, which could eventually give the Fed more room to move, though most economists do not expect any cut before late 2026 at the earliest.

Bitcoin’s climb past $65,000 puts it roughly 10 percent above the lows of early June but still significantly below its peaks from earlier in the year, when the cryptocurrency had traded in a higher range before the Iran conflict intensified. Technical analysts noted that the $65,000 level had previously acted as resistance and that a sustained hold above it could open the path toward higher targets.

Ethereum and other major cryptocurrencies also gained on Monday. The broader crypto market capitalisation rose by approximately $120 billion over the 24 hours following the deal announcement. Sentiment surveys showed a shift from bearish to neutral among active traders, though volatility remained elevated and several analysts cautioned that the move could reverse if the peace deal ran into implementation problems.

The Bybit exchange, which last week launched tokenised SpaceX shares for retail investors, reported higher-than-average trading volumes across its cryptocurrency pairs on Monday morning. CoinGabbar noted that Bitcoin’s move above $65,000 marked its highest level since late May and came alongside a visible improvement in the broader market mood tied directly to the ceasefire news. The next significant test for Bitcoin will come when more detail emerges about the 60-day nuclear follow-on talks and whether the deal’s implementation proceeds smoothly.