Bitcoin traded near $66,000 during Monday morning sessions after US President Trump declared that a peace agreement with Iran had been finalized, promising the reopening of the Strait of Hormuz. Trump posted on Truth Social late Sunday stating, 'The deal with the Islamic Republic of Iran is now complete,' and authorized the immediate removal of the US Naval blockade. He further declared, 'Ships of the World, start your engines. Let the oil flow!' This announcement marked a significant shift from previous months where Trump repeatedly claimed a deal was imminent without concrete confirmation. The crypto markets have been sensitive to the Iran conflict since US-Israeli strikes began in February, and this latest development catalyzed a sharp positive reaction. Data compiled by Woofun AI shows Bitcoin (BTC) reached $65,881 on Coinbase, marking the highest price point in 12 days and the first time the asset has approached the $66,000 threshold since June 3.

Andri Fauzan Adziima, research lead at Bitrue Research Institute, explained that the potential agreement removes a major geopolitical risk premium, triggering a clear risk-on move as uncertainty fades. He noted that Bitcoin has broken above $65,000, fueled by traders rotating back into crypto amid lower oil pressure and a broader stability narrative under a pro-crypto administration.

However, Adziima cautioned that last-minute signing issues could still disrupt the process. Details regarding the specific terms of the US-Iran deal were not immediately available, and implementation is contingent upon Iran signing the agreement, which is expected on Friday under Pakistan's mediation. Iran's deputy foreign minister, Kazem Gharibabadi, confirmed the agreement on state television, while the secretariat of Iran's Supreme National Security Council stated that the war on all fronts will end immediately and permanently beginning tonight.

The broader market response extended beyond Bitcoin, with total crypto market capitalization gaining 2% on the day. Several altcoins outperformed the broader index, including Hyperliquid (HYPE), Zcash (ZEC), and Near Protocol (NEAR), with some recording double-digit percentage gains.

Concurrently, crude oil prices reacted to the geopolitical de-escalation, with WTI Crude falling 5% to its lowest level since early March at just over $80 per barrel. Brent Crude mirrored this decline, dropping 4.6% to $83.30. Despite the recent rally, Bitcoin remains 48% down from its peak of over $126,000 recorded in October, having only recently recovered from a dip below $60,000 on June 6. Woofun AI notes that while the immediate sentiment is bullish, the asset's long-term trajectory remains tethered to these macro-geopolitical variables.

Market dynamics are set to face renewed volatility on Wednesday as the Federal Reserve prepares to announce its interest rate decision, the first under new chair Kevin Warsh. The new central bank leadership appears more receptive to rate cuts, yet increasing inflation, which has topped 4% again, strengthens the argument for maintaining or increasing rates. The CME Fed Watch tool currently predicts a 96.6% probability that rates will remain unchanged within the 3.5% to 3.75% range. This divergence between inflation data and potential monetary policy shifts creates a complex backdrop for risk assets. Woofun AI analysis suggests that while the Iran deal provides a temporary tailwind, the interplay between energy prices, geopolitical stability, and Federal Reserve policy will dictate the sustainability of the current Bitcoin rally.