Bitcoin Surpasses $63,000 as Easing US-Iran Tensions Improve Risk Sentiment

Bitcoin gained on Thursday, climbing nearly 2% to trade at $63,352.8, as investor sentiment improved on signs of easing geopolitical tensions between the United States and Iran.

Geopolitical Backdrop Boosts Crypto

The rally followed comments from President Donald Trump indicating that Iran had contacted Washington to "make a deal," according to Investing.com. This statement helped calm markets that were on edge after the U.S. launched strikes against approximately 170 targets in Iran earlier in the week in retaliation for attacks on commercial oil tankers. The de-escalation in rhetoric caused oil prices to decline from three-week highs, improving the outlook for risk assets like cryptocurrencies.

The move marks a recovery for Bitcoin, which had fallen in the previous session after Trump stated a ceasefire with Iran was "over." The cryptocurrency's ability to rebound from the initial geopolitical shock is a notable shift, according to one analyst.

Spot Demand and On-Chain Data Signal Strength

Market analysts suggest the current price recovery is built on a solid foundation, driven by spot demand rather than speculative leverage. According to Iliya Kalchev, an analyst at Nexo Dispatch, key indicators point to a constructive market structure:

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• Reduced Leverage: Bitcoin futures open interest has declined to around $30 billion, according to data from Glassnode, even as prices recovered. This suggests traders are cautious about adding leveraged positions in a volatile environment.
• Resilient Behavior: The market's ability to rally from oversold conditions, rather than extending losses on negative macro headlines, represents a "behavioral shift" from patterns observed in the second quarter.
• Supply Squeeze: The supply of Bitcoin on centralized exchanges has fallen to its lowest level since 2017, representing roughly 6.6% of the circulating supply. Kalchev noted that historically, sustained decreases in exchange balances have often preceded extended bull markets by reducing available selling pressure.

Broader Market Moves

Investors were also interpreting minutes from the Federal Reserve's June meeting, which Kalchev described as striking a "more divided and less hawkish tone than markets feared." While some FOMC participants argued for an immediate rate hike, the broader debate showed significant division on the path of inflation.

Other major cryptocurrencies also posted gains in tandem with Bitcoin. Ethereum, the second-largest crypto asset, rose 0.6%, while XRP, Solana, and Cardano also saw modest increases.