(Bloomberg) — Bitcoin climbed to its highest level in nearly two weeks after the US and Iran said they had reached an agreement to end hostilities and reopen the Strait of Hormuz.
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The original cryptocurrency rose as much as 5.1% to around $67,250 on Monday as investors resumed purchases of risk assets. Ether, the second-largest token, jumped nearly 11% at one point to roughly $1,850, while smaller tokens such as Solana and XRP also saw big gains.
The rally comes after recent market tumult saw Bitcoin dip below $60,000 earlier this month, hitting its lowest level since October 2024. When Michael Saylor’s Strategy, the Bitcoin-accumulating company and the token’s largest corporate buyer, revealed this month that it sold a tiny fraction of its holdings, it helped spark a selloff worsened by significant outflows in exchange-traded funds. The firm has resumed Bitcoin purchases in recent weeks. It bought $100 million worth of the token in the past week through selling common shares, following another purchase of over $100 million in the previous week.
“I think it’s ultimately going considerably higher,” Rick Rieder, BlackRock’s chief investment officer of global fixed income, said on Bloomberg TV about Bitcoin.
Risk appetite returned to markets after the US and Iran reached an interim peace agreement to reopen the Strait of Hormuz and move further toward ending hostilities. Stocks rose around the world, joining gains in bonds, while oil slumped. As of mid-afternoon in New York, the S&P 500 was on track to notch its biggest advance since April.
Geoffrey Kendrick, global head of digital-assets research at Standard Chartered, argues that crypto markets have formed a bottom and he’s looking at $83,000 for Bitcoin as an important level to watch.
The emergence of an agreement between the US and Iran presents “an interesting test” for Bitcoin, according to Daniela Hathorn, senior market analyst at Capital.com.
“During much of the conflict, crypto has traded like a high-beta risk asset with geopolitical uncertainty coinciding with ETF outflows, higher yields and weaker sentiment,” Hathorn said. “A successful agreement removes one of the major macro risks hanging over markets and could help support broader risk appetite, particularly if it contributes to lower oil prices and reduces inflation concerns.”