Bitcoin price action shifted decisively higher on Monday following an announcement by US President Donald Trump regarding a concluded agreement with Iran to reopen the Strait of Hormuz. This development immediately alleviated months of geopolitical pressure that had weighed on financial markets and energy prices since US-Israeli strikes commenced in February. The market reaction was swift, with the cryptocurrency briefly touching $65,881, marking its highest level in 12 days and the first approach to the $66,000 threshold since June 3. Data compiled by Woofun AI shows that Bitcoin is currently trading around $65,758.80, reflecting a 2.38% gain over the past 24 hours, while its market capitalization stands at $1.31 trillion.

Concurrently, 24-hour trading volume surged to $23.77 billion, representing a significant 35.08% increase as liquidity returned to risk assets.

The catalyst for this recovery was Trump's declaration on his Truth Social platform that the deal included the toll-free opening of the Strait of Hormuz and the immediate removal of the US naval blockade. Despite the positive market sentiment, full implementation details remain pending until Iran formally signs the accord, an event expected on Friday under the mediation of Pakistan. Iran's deputy foreign minister Kazem Gharibabadi confirmed the agreement on state television, while the Supreme National Security Council stated that the war on all fronts would end immediately and permanently. Woofun AI notes that while the announcement has renewed buying interest, traders remain cautious as the final outcome hinges on the successful completion of the signing process and subsequent implementation steps.

Market participants responded positively to the potential removal of a major geopolitical risk premium, prompting a rotation back into crypto assets. Andri Fauzan Adziima, research lead at Bitrue Research Institute, observed that Bitcoin breaking above $65,000 was fueled by traders returning to the market amid lower oil pressure and a broader stability narrative under a pro-crypto administration. He cautioned, however, that last-minute signing issues could reintroduce uncertainty and affect market reaction. Although Bitcoin has been recovering gradually after falling below $60,000 on June 6, the asset remains 48% below its October peak of more than $126,000, indicating that the recovery is still in early stages relative to historical highs.

The geopolitical shift also triggered a pronounced reaction in energy markets, with WTI crude oil dropping 5% to just above $80 per barrel, its lowest level since early March. Brent crude followed suit, falling 4.6% to $83.30, as traders priced in reduced supply concerns linked to the critical shipping route. The broader cryptocurrency market mirrored this positive sentiment, gaining 2% in total capitalization during the session. Several altcoins, including Hyperliquid, Zcash, and Near Protocol, recorded stronger performances with some posting double-digit gains. Woofun AI analysis suggests that the decline in oil prices added to positive sentiment across risk assets as investors evaluated whether reduced geopolitical pressure could support sustained market stability.

Looking ahead, Bitcoin's price trajectory will depend on the formal progress of the US-Iran agreement, evolving economic conditions, and upcoming monetary policy decisions. The Federal Reserve is scheduled to announce its interest rate decision on Wednesday, marking the first meeting under new Chair Kevin Warsh. With inflation rising above 4%, uncertainty persists regarding the central bank's next steps, though the CME Fed Watch tool currently indicates a 96.6% probability that interest rates will remain unchanged between 3.5% and 3.75%. Analysts are closely monitoring whether Bitcoin can maintain its recovery above $65,000 without further geopolitical disruptions or adverse macroeconomic signals.

The background of this agreement traces back to the conflict affecting global markets since February, which contributed to higher energy prices and increased investor uncertainty. Trump had repeatedly claimed over the past two months that an agreement to end the conflict was imminent. While the latest announcement has renewed market attention, the full details of the deal remain unavailable to the public. The formal signing process and future developments will ultimately determine whether the announced deal moves forward and sustains the current rally. Investors will now closely follow the next steps of the agreement to see whether the easing tensions continue or if new concerns emerge to challenge the market's upward momentum.