Bitcoin climbed above $65,000 Monday after the US and Iran reached a peace agreement ending their three-month conflict, sending a risk-on wave through crypto markets. The largest cryptocurrency touched $65,940 before settling at $65,668 as of press time, while Ethereum advanced to $1,724.
The deal, mediated by Pakistan, includes the immediate removal of the US naval blockade and the reopening of the Strait of Hormuz. Formal signing is set for June 19 in Switzerland. Oil prices fell sharply — West Texas Intermediate crude dropped to around $80 a barrel, Brent crude below $84 — underscoring the macro shift.
Why the peace deal matters for crypto
The conflict, which began in late February, had kept geopolitical risk elevated for months. Its resolution pulled a classic risk-off weight off markets. Bitcoin's move above $65,000 broke a stretch of choppy trading that had followed weeks of heavy selling.
The timing isn't great for volatility bears. The largest negative-gamma strike on the options board sits near Bitcoin's current price, worth about $1.8 billion. That concentration often amplifies price swings as dealers hedge — a setup that could keep traders on edge this week.
ETF flows show a cautious shift
US spot Bitcoin ETFs recorded $316 million in outflows last week — a severe slowdown from the $5 billion that bled out over the prior four weeks. More notably, last Friday saw $85 million in net inflows, the strongest single-day positive flow in over three weeks. Taken together, it suggests the worst of the institutional exodus may be behind us, though no one's calling it a full recovery yet.
Meanwhile, the exchange whale ratio hit 62.3% during the drawdown, signaling heavy selling by large holders. But that pressure appears to be easing: over 11,400 BTC — worth roughly $750 million — were moved from exchanges into cold storage, a classic hodler signal.
Newly appointed Fed Chair Kevin Warsh faces his first policy meeting this week. Markets will parse his tone carefully, especially with oil cooling and the peace deal potentially reshaping inflation expectations. The formal peace signing on June 19 caps a busy seven days for macro and crypto alike.
For now, Bitcoin sits just below the big negative-gamma strike — and above a level that had felt out of reach just days ago.
