Bitcoin surged above $61,600 after US-Iran peace talks signaled a reduction in geopolitical risks, encouraging investors to move back into riskier assets such as cryptocurrencies. This rally follows remarks that the long-standing oil bull market is losing steam due to the anticipated reopening of the Strait of Hormuz, which historically restricted around 20% of global oil supply.
ARK Invest’s Cathie Wood highlighted that the reopening of this key maritime route will likely expand oil availability and trigger a significant drop in prices. Crude oil fell to $68, marking its lowest point since early 2026, reflecting the market’s response to improving international relations and additional supply entering the market.
The de-escalation between the US and Iran, enhanced by recent negotiations involving Qatar and Pakistan, has helped restore confidence across markets. Bitcoin reversed an earlier decline, moving from around $57,800 to its current levels in just a couple of days. Technical indicators point to a bullish shift, with Bitcoin forming a double-bottom pattern and breaking key resistance barriers, suggesting further upward potential.
The Relative Strength Index (RSI) currently sits in bullish territory, while momentum indicators reinforce the positive trend. If buying pressure holds, Bitcoin could approach $67,000. However, sustained losses below the $60,900 support level might disrupt this outlook.
Additional optimism stems from renewed inflows into Bitcoin ETFs, with analysts noting buy signals not only for Bitcoin but also for major altcoins like Ethereum, XRP, and Solana. This broadening support aligns with market sentiment favoring digital assets amid easing geopolitical uncertainty and weakening oil prices.