Bitcoin’s price rose toward $80,000 after US President Donald Trump hinted that the US-Iran war would end, pushing oil prices lower.
Data from TradingView showed BTC/USD erasing its weekend losses and gaining around 3% on the day.
Crypto saw fresh upside as Trump boosted prospects of a peace deal with Iran.
“The failing Nation of Iran wants to make a deal, quickly and badly. I will determine whether or not the U.S.A. will choose to engage - The concept of which we are open to,” he wrote in a post on Truth Social.
US equities initially gained at Monday’s Wall Street open but subsequently turned red amid ongoing uncertainty over the fate of key oil-transit routes in the Middle East. The S&P 500 was down 0.3% at the time of writing.
In addition to the Strait of Hormuz, both Saudi Arabia’s East-West pipeline and the Bab El-Mandeb Strait were under threat as the conflict expanded beyond Iran.
US WTI crude oil remained above $100 per barrel at the time of writing, while Brent crude traded at $105 per barrel.
Trump later doubled down on his prediction of lower oil prices while also alluding to an end to the Iran conflict, causing oil prices to dip.
“With the temporary exception of Oil, prices are coming down sharply, and Oil will drop like a rock as soon as the Military Conflict with Iran is over, and that will not be long,” a separate Truth Social post read.
The latest data from CME Group’s FedWatch Tool puts the odds of a hike at 92.7%, up from 59.4% a week ago.
Discussing the implications of the week’s Fed decision for BTC price action, QCP argued that risk assets had already priced in a 0.25% hike, with less volatility expected as a result.
An overall muted response to last week’s Consumer Price Index (CPI) inflation data, it argued, means that Fed officials’ language now mattered more than the decision itself.
“This containment reflects a shift in focus: the binary question of whether the Fed will hike has been answered; the critical issue for positioning is now how policymakers frame the move and what it signals about the path ahead,” it wrote.
BTC/USD returned above its 50-week exponential moving average (EMA) at $77,430 on Monday after initially closing the weekly candle below it. The 50-week EMA represents a key support target for Bitcoin bulls to reclaim as part of a bull-market comeback.