Bitcoin prices hit 2-week high today: What's the reason?
What's the story
Bitcoin, the world's largest cryptocurrency, has surged to its highest level in nearly two weeks. The spike comes after the US and Iran announced a peace deal and plans to reopen the Strait of Hormuz. The digital currency rose by nearly 3% during early Asia trading today, hitting around $65,400 at 9:30am in Singapore.
Market response
Ether and other smaller tokens also witness gains
The positive market reaction wasn't limited to Bitcoin. Ether, the second-largest cryptocurrency, also surged by as much as 3.7% to $1,731. Other smaller tokens like Solana and XRP witnessed even bigger jumps in their values. The rally comes after a period of market instability that saw Bitcoin fall below $60,000 and hit its lowest level since October 2024.
Market fluctuations
Strategy's sell-off impacted market earlier
The recent market fluctuations were also influenced by Bitcoin-accumulating company Strategy's decision to sell a small portion of its holdings. This move, combined with heavy outflows from exchange-traded funds (ETFs), triggered a selloff in the crypto market. "The Strategy risk has not been cleared, but the market is overlooking it," said Pratik Kala, portfolio manager at Apollo Crypto.
Political impact
Trump's peace deal announcement boosts risk appetite
The market's risk appetite was further bolstered by President Donald Trump's announcement on social media that a peace deal with Iran "is now complete." He also said the US would lift its blockade of the Strait of Hormuz, an important trade route. This news led to a jump in Asian shares and a nearly 1% rise in S&P 500 futures, while Brent crude fell over 4%.