Bitcoin nears $66K as Trump says US has peace deal with Iran

Bitcoin came just shy of $66,000 during Monday morning trading after US President Trump claimed that the US had brokered a peace deal with Iran that would reopen 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.

Trump has claimed dozens of times over the last two months that a deal to end the war was near, and the crypto markets have traded on news of the Iran war since it started in February with US-Israeli strikes.

Markets reacted positively to Trump’s latest claim, with Bitcoin (BTC) reaching $65,881 on Coinbase on Monday morning, according to TradingView. It is the highest the asset has traded over the last 12 days, having not been over $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.

The details of the deal between the US and Iran were not immediately available, and it would not be implemented until Iran signs, which is expected on Friday under mediation by Pakistan, the Associated Press reported.

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.” 

Bitcoin has been gradually trending up since it fell below $60,000 briefly on June 6; however, it remains 48% down from its peak of over $126,000 in October. 

The broader crypto market also gained 2% in total capitalization on the day, with several altcoins, including Hyperliquid (HYPE), Zcash (ZEC) and Near Protocol (NEAR) were outperforming, some with double-digit percentage gains. 

There was also movement in crude oil prices, with WTI Crude falling 5% to its lowest level since early March at just over $80 per barrel, while Brent Crude mirrored the move, dropping 4.6% to $83.30.

More volatility may be ahead 

Wednesday could add more volatility to crypto markets as the Federal Reserve is scheduled to make its interest rate decision, the first under new chair Kevin Warsh. 

The new central bank chair appears more receptive to cuts, but increasing inflation, which has topped 4% again, strengthens the case for rate increases.

The CME Fed Watch tool currently predicts a 96.6% probability that rates will remain unchanged at 3.5% to 3.75%.