Bitcoin Reclaims $65,000 as US-Iran Peace Deal Eases Market Fears

Bitcoin has reclaimed the $65,000 level after the announcement of a US-Iran peace agreement, which improved risk sentiment across global markets. The development triggered sharp reactions across oil, gold, and crypto, with investors moving back into risk assets.

The Strait of Hormuz reopening on June 14 and confirmation of a signing ceremony in Switzerland for June 19 have eased market fears. Lower energy prices reduced inflation pressure and strengthened the macro case for risk assets ahead of the Federal Reserve's policy decision next week.

Spot Bitcoin ETFs recorded $85.8 million in net inflows, ending a five-day streak of outflows. BlackRock's IBIT captured $58 million, while Fidelity's FBTC added $42 million, indicating renewed institutional interest.

The Federal Reserve's policy decision on June 16-17 and Fed Chair Kevin Warsh's commentary on inflation and forward guidance now hold the key to whether this recovery extends or stalls. Markets are pricing in a near-certain rate hold, but downside risk remains with support standing at $63,300 and $62,500.