Bitcoin Surpasses $63,000 as Easing U.S.-Iran Tensions Boost Risk Appetite

Bitcoin climbed nearly 2% to trade above $63,000 on Thursday, as an apparent de-escalation in U.S.-Iran tensions improved broader market risk sentiment and pushed oil prices lower. The move reversed losses from the previous session, which were driven by fears of a wider conflict in the Middle East.

By 17:09 ET (21:09 GMT), Bitcoin was trading at $63,352.8, up 1.9% for the session, according to data from Investing.com.

Geopolitical Tensions Ease

The rally in risk assets followed comments from President Donald Trump, who said Iran had contacted Washington and wanted to "make a deal so badly." The statement came after the U.S. military launched strikes against approximately 170 targets in Iran in retaliation for attacks on commercial oil tankers. The de-escalatory comments from the U.S. leader caused oil prices to retreat from three-week highs, calming investor nerves.

This marks a sharp reversal from Wednesday, when Bitcoin fell after Trump stated that a ceasefire with Iran was "over." The market's quick rebound highlights its sensitivity to macroeconomic and geopolitical developments.

On-Chain Data Signals Strength

Analysts noted that the recovery appears to be driven by fundamental demand rather than speculative leverage. According to Iliya Kalchev, an analyst at Nexo Dispatch, the rally from oversold territory represents a "behavioral shift from the pattern that defined much of Q2, when every macro shock drove capital out of the sector."

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Several on-chain and derivatives metrics support this view:

• Spot-Driven Demand: Bitcoin futures open interest has declined to around $30 billion, according to Glassnode, even as prices recovered. This suggests traders are reluctant to add leveraged exposure and that spot buying is fueling the move.
• Declining Exchange Supply: The supply of Bitcoin held on centralized exchanges has fallen to its lowest level since 2017, representing roughly 6.6% of the circulating supply. Kalchev noted that historically, "sustained drawdowns in exchange balances have preceded multi-quarter bull phases."
• Lower Volatility: The 30-day implied volatility index has also declined, signaling market expectations for calmer conditions ahead.

Broader Crypto Market Rises

The positive sentiment was felt across the cryptocurrency market, with most major altcoins posting gains in tandem with Bitcoin. World no. 2 crypto Ethereum added 0.6% to trade at $1,749.50, while Solana rose 1.2% and XRP climbed 0.6%.

Market participants also digested minutes from the Federal Reserve's June meeting, which Kalchev described as striking a "more divided and less hawkish tone than markets feared." The less aggressive stance from the central bank provided an additional tailwind for risk assets like cryptocurrencies.