Bitcoin After surging above $70,000 in early trading, gains continued on Monday, but the fate of the rebound now depends on what’s next between the United States and Iran.
This comes after U.S. President Donald Trump announced a five-day pause in attacks on Iran’s energy infrastructure, citing “productive” diplomatic talks.
Risk assets held firm during the session as Iranian officials denied there were talks, but markets largely shrugged it off.
Bitcoin was hovering just below $71,000 late in the session, up 3.8% in the past 24 hours. Altcoins performed well, including Ethereum (ETH), Solana (SOL) and Each rose about 5%.
Cryptocurrency-related stocks also rose, led by Bitcoin miners who are increasingly trading in line with trends in artificial intelligence infrastructure. Hut 8 (HUT) is up more than 11%, while Bitfarms (BITF), Cipher Mining (CIFR), CleanSpark (CLSK), Riot Platforms (RIOT) and TeraWulf (WULF) are up 6%-7%.
Traditional markets followed suit, with the S&P 500 and Nasdaq both up about 1.2%.
While the temporary pause has eased pressure on energy markets, traders should be cautious about the rebound in risk assets.
“The macro ceiling has changed,” said Jasper de Maere, OTC trader at Wintermute. “How much space opens up depends on the next five days.”
He said that if oil stabilizes and shipping traffic in the Strait of Hormuz normalizes, inflation concerns may ease, bringing interest rate cut expectations back and removing major headwinds for cryptocurrencies.
In this scenario, de Maere said Bitcoin could rise again toward the $74,000 to $76,000 range, levels that have capped gains in recent weeks.
He said a breakdown in negotiations or another disruption to energy supplies would have the opposite effect. This could push oil prices higher again, exacerbating inflation risks and putting the market back into risk-off mode, potentially pulling Bitcoin back to around $60,000.
