TL;DR
- Bitcoin reclaimed $65,000 on Monday after the Iran-U.S. pause pushed Brent crude toward $87, easing inflation pressure and improving demand for risk assets.
- Ether approached $2,000 for the first time since early June, while AAVE, ONDO, UNI, LINK, and PUMP led broader cryptocurrency gains.
- Federal Reserve uncertainty remains, but derivatives showed stronger momentum in Ether than Bitcoin, even as expensive downside protection signaled that traders still see considerable market risk.
Bitcoin reclaimed the $65,000 level on Monday as a pause in hostilities between Iran and the United States eased pressure across global risk markets. Brent crude fell more than 7% toward $87 after planned strikes around the Strait of Hormuz were suspended while mediation continued. The geopolitical pause quickly translated into renewed appetite for cryptocurrencies and equities. Bitcoin briefly reached $65,600 before settling near $65,200, while Ether approached $2,000 for the first time since early June. The rebound was encouraging for investors, although traders remained cautious before the Federal Reserve’s policy decision later this week.
Ether and DeFi tokens lead a selective market recovery
The broader market response extended well beyond Bitcoin. Ethereum climbed to roughly $1,980, marking its strongest level in almost two months, and remained about 4.5% higher over 24 hours. Ethereum led a selective rotation into large-cap and decentralized finance tokens, with AAVE advancing 9%, ONDO gaining between 7% and 8%, UNI rising 6.5%, and LINK adding 4.65%. PUMP stood out with a gain above 11%, while BNB, XRP, SOL, TRX, HYPE, and ZEC also traded higher across broader digital asset markets. The total cryptocurrency market capitalization increased by about $30 billion to approximately $2.31 trillion.
The improvement in sentiment followed a sharp reversal in energy prices, which had fueled inflation concerns during the conflict. Nasdaq 100 futures gained 1.36%, while S&P 500 futures rose 0.80%, showing that relief spread across traditional markets. Lower oil prices reduced immediate fears that persistent inflation would force tighter monetary policy across global asset classes overall today. Market expectations placed the probability of a Federal Reserve rate increase at 30.5%, down from 37.4% at Friday’s close. Nevertheless, uncertainty remains because inflation was reported near 4.1%, leaving Wednesday’s decision capable of changing the market’s direction abruptly.
Derivatives data presented a more complicated picture beneath the rally. Bitcoin’s rebound forced the closure of bearish positions, with short liquidations accounting for most of the $312 million liquidated over 24 hours. However, Bitcoin futures open interest declined from more than 760,000 BTC to 740,000 BTC, suggesting limited participation from leveraged traders. Ether’s derivatives market offered stronger confirmation of bullish momentum, as open interest reached 14.66 million ETH, its highest since June 7, alongside positive funding and buying pressure. Even so, downside protection remained expensive, reminding traders that geopolitical relief has not eliminated market risk.
