What happened: Bitcoin (BTC-USD) jumped more than 5% on Monday to hover above $67,000 as the overall market rose.
What’s behind the move: Crypto prices rose after President Trump said the US reached a ceasefire deal with Iran, calling the agreement “complete” in a post on Truth Social. Talks on a final peace deal are expected to begin within 60 days.
Risk assets, including cryptocurrencies, also got a boost from expectations that the Federal Reserve may be willing to look past recent hotter-than-expected inflation readings and perceive them as temporary if the Strait of Hormuz fully reopens to oil flows.
Bitcoin jumped on Monday as the overall market rose. (Reuters/Dado Ruvic/Illustration/File Photo)
(REUTERS / REUTERS)
What else you need to know: Investors have been looking for signs that the crypto winter may be ending, but some strategists caution that the challenges facing bitcoin remain.
“ETF flows are sluggish at best,” Nic Puckrin, a macro and cross-asset analyst at Coin Bureau, said Monday.
“If bitcoin can decisively break above $70,000 and reclaim prior support levels around $74,000, that would give me more confidence. Until then, this looks more like a dead-cat bounce,” he added, referring to a short-lived recovery.
Bitcoin has underperformed broader markets since the March 30 market lows. The token briefly fell to $60,000 earlier this month. Sentiment weakened after news that Strategy (MSTR) had sold a small fraction of its holdings sparked concerns about the sustainability of the bitcoin treasury giant’s long-standing accumulation strategy.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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