Bitcoin Holds Above $66K as Fed and Iran Deal Take Focus
Bitcoin traded steadily on Tuesday after recovering part of its recent losses. However, investors remained cautious ahead of the planned U.S.-Iran peace agreement and the Federal Reserve’s upcoming policy decision.
Continued withdrawals from spot Bitcoin exchange-traded funds also limited the recovery. Meanwhile, the Bank of Japan’s interest-rate increase and hawkish outlook added further pressure to cryptocurrency markets.
Bitcoin gained around 0.4% to trade near $66,116 during early Tuesday trading.
U.S.-Iran Peace Deal Supports Market Sentiment
Bitcoin recovered some ground after the United States and Iran reached a preliminary agreement aimed at ending the conflict and reopening the Strait of Hormuz.
Officials from both countries are expected to sign a memorandum of understanding on Friday. Investors are now waiting for more information about how the agreement will be implemented.
Reports indicate that the two sides agreed to stop military hostilities, restore access through the Strait of Hormuz and lift the U.S. naval blockade against Tehran.
Washington and Tehran also agreed to hold further negotiations regarding Iran’s nuclear activities.
Although the announcement improved demand for riskier assets, uncertainty surrounding the agreement prevented Bitcoin from making a stronger move.
Federal Reserve Decision Moves Into Focus
Investor attention is now shifting toward the Federal Reserve’s interest-rate announcement on Wednesday.
The U.S. central bank is widely expected to keep interest rates unchanged during its first policy meeting under new Chair Kevin Warsh.
Markets will closely examine the Fed’s economic projections and guidance on future interest-rate moves. Investors are particularly interested in how policymakers view the economic disruption caused by the Iran conflict.
A hawkish policy outlook could strengthen the U.S. dollar and place additional pressure on Bitcoin and other cryptocurrencies.
Bitcoin ETF Outflows Limit Recovery
Investors continued withdrawing money from spot Bitcoin ETFs at the beginning of the week, although the pace of outflows slowed compared with previous periods.
Spot Bitcoin ETFs recorded approximately $64.09 million in net withdrawals on Monday, according to SoSoValue data.
The latest decline followed five consecutive weeks of outflows. Some investors appear to be reducing their exposure to cryptocurrencies and moving capital toward sectors with clearer earnings prospects, including artificial intelligence stocks.
Persistent ETF withdrawals have weakened institutional demand and made it more difficult for Bitcoin to build stronger upward momentum.
Altcoins Rise but Broader Recovery Remains Weak
Most major cryptocurrencies moved higher on Tuesday, although the recovery remained limited by a lack of strong positive catalysts.
Ethereum gained approximately 2.6% to trade near $1,763, while XRP climbed 3.8% to around $1.23.
Solana advanced 3.4%. In contrast, Cardano declined 2%, while BNB slipped 0.5%.
Memecoins also faced selling pressure. Dogecoin fell around 1.6%, while the Official Trump token dropped 4.3%.
