Bitcoin Rebounds as Iran Peace Talk Lifts Crypto Sentiment

After two volatile weeks in crypto, traders are seeing a modest recovery. Bitcoin rose above $65,800 on Monday, Ethereum returned to about $1,720, and Solana gained more than 4% over the last 24 hours, following the sharp selloff at the start of the month.

The main catalyst is geopolitical. U.S. President Donald Trump said a peace agreement between the United States and Iran is expected to be signed this weekend, and that afterward the Strait of Hormuz would be “open to all.” The strait is one of the world’s key choke points, carrying about one-fifth of global oil traffic, and fears over disruption there had been a major driver of higher energy prices, inflation worries and pressure on risk assets including stocks and crypto.

Market data suggests traders are starting to price in a calmer outlook. Bitcoin was trading around $65,820, up about 2.2% in 24 hours. Ethereum was up roughly 2.4% to $1,719, while Solana stood out at around $71 per coin. Even so, the Fear & Greed Index remained at 23, a clear “fear” reading that shows most investors still doubt the rally will last.

Analysts are watching the $65,000 to $67,000 area as Bitcoin’s next critical test. Just days ago, the coin fell to around $60,000 after heavy selling, ETF outflows and escalating Middle East tensions. If Bitcoin can break and hold above current resistance, bearish scenarios could weaken, especially if short sellers are forced to buy back coins in a potential short squeeze. It is still too early to declare the crisis over, and markets remain focused on the Middle East, oil prices and U.S. interest-rate policy, but investors now have their first real reason in weeks for optimism.