Hassan Maishera
TL;DR
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Bitcoin reclaimed the $65,000 level as easing tensions between the U.S. and Iran lifted investor sentiment across global markets.
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Ether surged more than 3%, while Solana, XRP, and other major cryptocurrencies also posted gains.
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Oil prices dropped sharply, easing inflation concerns ahead of the Federal Reserve's July policy meeting.
Bitcoin climbed back above $65,000 on Monday after a pause in military hostilities between the United States and Iran boosted investor confidence and reignited demand for risk assets.
The broader cryptocurrency market also advanced, with Ether (ETH) leading gains among major digital assets as global markets reacted positively to declining geopolitical tensions and falling oil prices.
Crypto Market Rallies as Risk Appetite Returns
Bitcoin rose about 1.2% over the past 24 hours to trade above $65,000, while Ether gained more than 3%, approaching the $1,950 level.
Other leading cryptocurrencies, including Solana (SOL) and XRP, also recorded gains of between 1% and 2%, reflecting renewed optimism across the digital asset market.
The rally coincided with broader gains in global financial markets, where investors shifted back toward higher-risk assets following signs of de-escalation in the conflict between the U.S. and Iran.
Market sentiment improved after the United States and Iran refrained from launching military strikes against each other for a second consecutive day.
According to reports, Iran indicated it would continue suspending airstrikes as long as the United States maintained the same stance, raising hopes for renewed diplomatic negotiations after months of conflict.
The easing of tensions triggered a sharp decline in oil prices, with West Texas Intermediate (WTI) crude futures falling roughly 5% to around $85 per barrel.
Meanwhile, U.S. equity futures moved higher, with contracts linked to the Nasdaq and S&P 500 rising about 0.5%. Currency markets also reflected stronger risk sentiment, as the Australian dollar and euro appreciated against the U.S. dollar.
Falling Oil Prices Ease Inflation Concerns
Vikram Subburaj, CEO of cryptocurrency exchange Giottus, said the improvement in macroeconomic conditions also supported the crypto market.
He noted that Brent crude falling nearly 4.7% to around $92 per barrel could help reduce inflationary pressures, although investors remain focused on the upcoming U.S. Federal Reserve meeting scheduled for July 28–29.
According to market pricing, traders currently assign roughly a 36% probability that the Fed will raise interest rates by 25 basis points at the meeting.
Lower inflation expectations and a less aggressive monetary policy outlook have historically provided support for cryptocurrencies and other risk-sensitive assets.
Subburaj also pointed to Ether's stronger performance as a sign that investors are beginning to rotate capital into alternative cryptocurrencies.
However, he noted that Bitcoin's market dominance remains around 58.6%, suggesting the market has not yet entered a full-scale altcoin rally.
Instead, Bitcoin continues to attract the majority of institutional and investor interest, while selective gains emerge across large-cap alternative cryptocurrencies.
Analysts Say Bitcoin May Be Nearing a Market Bottom
Beyond the latest geopolitical developments, some market analysts continue to focus on Bitcoin's historical four-year market cycle.
Joao Wedson, founder and CEO of blockchain analytics platform Alphractal, said the current cycle appears to be approaching a critical phase.
According to Wedson, previous Bitcoin bear markets have typically reached their lows approximately 900 days after each Bitcoin halving. The current cycle has reached around 827 days, suggesting Bitcoin could be entering the final stage of its accumulation period.
If historical patterns continue, he believes Bitcoin may establish its cycle bottom within the next two months before potentially beginning another long-term bullish trend.
Markets Await the Federal Reserve's Next Move
While easing geopolitical tensions have improved investor sentiment, attention is now shifting toward the Federal Reserve's upcoming interest rate decision.
The central bank's policy outlook, combined with inflation data and broader macroeconomic conditions, is expected to play a key role in determining whether the latest cryptocurrency rally can extend further in the weeks ahead.
In an email to Cryptowisser, the Bitfinex analysis team stated that a dovish outcome is not on the menu, so the average trader is not positioned for one. A hold is not dovish in a macro-sensitive environment for risk assets, and Fed futures still frame the choice as hold or hike by year-end."
"Positioning looks fragile. The market has drifted into the meeting under-insured. Thirty-day put skew compressed from roughly 6.5 volatility points on 14 July to around 2.2 by 23 July, with the put/call ratio at a six-month low, so downside protection was monetised into the CPI rally and never replaced... The market is carrying its least downside insurance since June into a meeting priced for neutrality," the team added.
For now, declining oil prices, renewed optimism over diplomacy, and improving risk appetite have combined to push Bitcoin and the broader crypto market back into positive territory.
