Bitcoin Takes Off: How a Pause in the War and Fed Expectations Brought Investors Back into the Crypto Market
Monday Morning: Digital Gold Shines Again
When investors opened their trading terminals on Monday morning, BTCUSD ... was already reacting strongly to the positive news that emerged over the weekend. The world’s largest cryptocurrency climbed above the $65,000 mark, gaining 1.5% to reach $65,405. This was not merely a technical move—it was a signal that the market was shifting back toward risk assets after weeks of fear and uncertainty. Following a volatile previous week that ended almost unchanged, Bitcoin finally found the strength to make a confident move higher.
What triggered this rally? The answer lies in the events that unfolded in the Middle East over the weekend. The suspension of reciprocal strikes between the United States and Iran after 13 nights of continuous bombardment provided exactly the relief the markets had been waiting for. Although it is still too early to call this peace, even a temporary pause in the conflict sparked a wave of optimism across global financial markets.
However, geopolitics was not the only factor driving Bitcoin higher. The decline in oil prices following the ceasefire also played an important role. Brent crude fell by more than 5%, easing concerns about another surge in inflation. When inflation expectations decline, the dollar tends to weaken, making dollar-denominated assets, including cryptocurrencies, more attractive to international investors.
A Geopolitical Pause: A Fragile Ceasefire and Its Impact on the Markets
Saturday and Sunday brought something many investors had not expected: the United States and Iran, which had spent the previous two weeks exchanging military strikes, suddenly announced a suspension of hostilities. Iran declared that it was prepared to halt retaliatory attacks provided that Washington also refrained from further military action. The United States, in turn, suspended its bombing campaign.
For the markets, this was an extremely powerful signal. A conflict that had...