Bitcoin Climbs Above $65,000 as Easing Geopolitical Tensions Boost Risk Appetite

Bitcoin climbed above the $65,000 mark on Monday, recovering from last week's volatility as an apparent de-escalation of conflict in the Middle East improved investor sentiment. The leading cryptocurrency traded 1.5% higher at $65,405.4 as of 01:29 ET (05:29 GMT), according to data from Investing.com.

Geopolitical Relief Drives Market Rebound

Market sentiment brightened after reports indicated a pause in retaliatory attacks between the U.S. and Iran over the weekend, reducing fears of a wider regional conflict. The development triggered a sharp sell-off in oil prices, with Brent crude futures falling more than 5%.

Lower energy costs help alleviate immediate concerns about a resurgence in inflation. This, in turn, lessens the pressure on central banks to maintain restrictive monetary policies, creating a more favorable environment for risk assets like cryptocurrencies. The U.S. dollar also softened, making dollar-denominated assets more attractive to global investors.

Focus Shifts to Federal Reserve

Investor attention is now turning to the upcoming U.S. Federal Reserve policy meeting. While the central bank is widely expected to hold interest rates steady on Wednesday, market participants will closely analyze comments from Chair Jerome Powell for any signals regarding the future path of monetary policy.

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Higher interest rates typically increase the appeal of safer, yield-bearing investments and can dampen enthusiasm for speculative assets. Bitcoin has increasingly traded in line with other risk-sensitive markets, such as technology stocks, which also saw gains in futures trading.

Altcoins Follow Bitcoin Higher

Most other major cryptocurrencies also advanced on Monday, tracking Bitcoin's positive momentum. Key market movements included:

• Ethereum (ETH): Climbed 4.1% to $1,959.92
• XRP (XRP): Rose 1% to $1.109
• Solana (SOL): Advanced 2%

Cardano (ADA) traded largely flat, while Dogecoin (DOGE) saw a slight decline of 0.8%, according to the source data.