Bitcoin Reaches $65,000 as US-Iran Tensions Ease

Bitcoin surged above $65,000 on Monday, July 27, after a temporary de-escalation between the United States and Iran eased immediate geopolitical tensions and pushed oil prices lower. The cryptocurrency settled near $65,200 after climbing to an intraday high of $65,744, as the broader risk asset complex, including U.S. equities, rallied on the news. The advance was short-lived, however, with Bitcoin declining roughly 3% by Tuesday, July 28, to trade around $63,270, erasing most of the prior day's gains.

Monday's rally was fueled by reports that military strikes between the U.S. and Iran had paused, reducing fears of a wider regional conflict that could disrupt global oil supplies. Brent crude oil prices fell sharply, dropping between 6.5% and 7% toward $87-$90 per barrel. The subsequent drop in energy prices alleviated near-term inflation concerns, improving sentiment toward risk-sensitive assets like cryptocurrencies and stocks. U.S. equity futures traded higher alongside Bitcoin, while Ethereum outperformed, climbing to nearly $2,000 for the first time since early June.

The rebound failed to attract sustained institutional demand. Data showed U.S. spot Bitcoin exchange-traded...