Bitcoin rose back above $65,000 as easing tensions between the United States and Iran and progress on the U.S. CLARITY Act draft lifted demand for risk assets.
The shift from military tension to diplomacy between Washington and Tehran strengthened risk appetite across global markets, while Ethereum and several other large cryptocurrencies also gained.
The halt in military operations and the return of diplomatic talks improved investor confidence.
Lower geopolitical tension also pushed oil prices down, easing concerns about energy costs and supporting expectations that inflation pressures could moderate. Investors responded by returning to riskier assets such as equities and cryptocurrencies.
Progress on the CLARITY Act draft under discussion in the U.S. Congress provided additional support to the crypto market.
The draft is expected to establish a clearer legal framework for crypto assets and reduce long-running regulatory uncertainty in the sector.
The proposal includes a clearer division of authority between the Securities and Exchange Commission and the Commodity Futures Trading Commission, stronger legal protections for decentralized finance developers and safeguards for property rights linked to personal crypto wallets.
Bitcoin’s advance was also supported by a slowdown in net outflows from spot Bitcoin exchange-traded funds and renewed buying by institutional investors.
Analysts said accumulation by large funds in the spot market had reduced selling pressure and tightened market liquidity.
Open interest in futures and options markets also increased, indicating stronger bullish positioning among investors.
Demand rose for call options with a $70,000 strike price, supporting expectations that Bitcoin could test new highs. Recovering technical indicators and upward crosses in short-term moving averages also reinforced the positive price outlook.
Bitcoin’s rebound spread to the broader market, with Ethereum and other large-cap altcoins posting gains. The Fear and Greed Index also moved back above neutral.
Experts said the rally could broaden if geopolitical risks continue to ease and progress on U.S. crypto regulation continues.
