Bitcoin Stays Below $67,000 Despite Optimism Over U.S.-Iran Peace Deal
Bitcoin is still below $67,000 as traders wait for the U.S.-Iran deal to be finalized. ETF outflows and central banks are also keeping the market cautious for now.
Key Takeaways
- Bitcoin briefly climbed above $67,000, but then fell back below $66,000 after a cautious reaction to the U.S.-Iran peace deal.
- Traders are waiting for the formal signing on June 19 in Switzerland before they see the deal as lasting.
- Outflows from U.S. spot Bitcoin ETFs and central bank decisions could keep affecting Bitcoin's volatility.
Bitcoin briefly climbed above $67,000 (€57,700) on Monday evening, but then fell back below $66,000 (€56,900). That pullback shows how cautious crypto traders are about the recent peace deal between the United States and Iran, even as it gave other markets a boost.
Cautious Reaction to Peace Deal
The crypto market is skeptical about the deal, partly because earlier ceasefires between the two countries did not hold. Bitcoin was trading at $65,845 (€56,700) on Tuesday, up 0.3% over 24 hours and nearly 5% for the week. Ethereum and Solana also posted gains, rising 2.8% and 3.2%, respectively. XRP also climbed 3.2%. Despite the optimism in traditional markets, such as the S&P 500 rising 1.7% and the Nasdaq 100 gaining 3.1%, Bitcoin remains relatively steady.
The reopening of the Strait of Hormuz, a key route for oil and liquefied natural gas, is seen as an important part of the deal. Still, traders are waiting for the formal signing of the agreement on June 19 in Switzerland before treating it as lasting. That helps explain the cautious mood in the crypto market. Earlier, news of the deal had already sparked a quick rally in the coin, as the reaction to falling oil prices showed.
Impact of Institutional Investors and Macro Factors
The recent outflow of about $5.4 billion (€4.7 billion) from U.S. spot Bitcoin ETFs, including a record week of $3.4 billion (€2.9 billion), points to caution among institutional investors. While those outflows have now stopped, there is still no clear return of marginal buyers. One positive sign is that coins are still being moved off exchanges and into cold storage, which limits the available supply.
Along with geopolitical developments, macro factors are also playing a role. Central banks, such as the Bank of Japan, which raised rates to 1%, and the upcoming decision from the Federal Reserve, could affect Bitcoin's volatility. Bitcoin is currently acting like a risky asset with high volatility, so the outcome of these events could shape where the price goes next.
Why This Matters for European Crypto Investors
For European investors, it's important to understand that the crypto market is still sensitive to global geopolitical developments and institutional capital flows. The wait-and-see approach around the U.S.-Iran deal may suggest that the market will only see major price moves after deals like this are formally confirmed. On top of that, central bank decisions around the world could indirectly affect the European crypto market, given how connected global financial markets are.
