Bitcoin Rises as Market Sentiment Improves
Bitcoin moved higher on Thursday as investor risk appetite improved and oil prices declined.
The move came after President Donald Trump said Iran had contacted Washington and asked to reach a deal following renewed U.S. strikes against the country.
Bitcoin Recovers From Previous Losses
The world’s largest cryptocurrency had fallen nearly 2% in the previous session after Trump said the ceasefire with Iran was “over.”
His comments marked a major escalation between the two sides after they had reached an interim peace deal last month.
By 17:09 ET, Bitcoin was up 1.9% at $63,352.8.
Analysts Point to Bitcoin Resilience
Iliya Kalchev, analyst at Nexo Dispatch, said Bitcoin was trading around 9% above June’s monthly close.
He noted that Bitcoin initially sold off after the latest geopolitical headlines but quickly recovered from oversold levels. According to Kalchev, this showed a change in market behavior compared with much of the second quarter, when macro shocks often triggered sharp crypto outflows.
Spot Demand Supports Bitcoin Rally
Kalchev also said derivatives positioning showed a cautious but constructive market setup.
Bitcoin futures open interest has fallen to around $30 billion, according to Glassnode, even as the price recovered. This suggests traders are not aggressively adding leveraged positions.
Instead, the rebound appears to be driven more by spot demand than by leverage. The decline in implied volatility also points to expectations for calmer market conditions.
Bitcoin Exchange Supply Falls
Another important signal is the decline in Bitcoin held on centralized exchanges.
Kalchev said exchange-held Bitcoin has dropped to its lowest level since 2017, representing about 6.6% of circulating supply.
Historically, lower exchange balances have often supported longer bull phases, as fewer coins available for sale can reduce selling pressure.
Oil Prices Fall After Trump Comments
Oil prices also moved lower after Trump said Iran wanted to make a deal following fresh U.S. military action.
The decline came one day after oil prices reached their highest levels in around three weeks.
Markets appeared to take comfort from Trump’s comments, with traders hoping that neither side wanted to return to a full-scale conflict.
U.S.-Iran Tensions Remain in Focus
The recent escalation followed attacks on three commercial oil tankers.
In response, the U.S. military launched strikes on around 170 targets in Iran, including air defense systems, missile sites, drone storage facilities, and Islamic Revolutionary Guard Corps boats.
Iranian forces later responded by striking U.S. bases in the region, according to state media.
Fed Minutes Add to Market Debate
Crypto investors were also watching the latest Federal Reserve meeting minutes.
Minutes from the June 16-17 FOMC meeting showed that some officials supported raising interest rates immediately. However, the central bank ultimately kept its key policy rate unchanged.
The updated projections showed a more hawkish outlook, partly due to concerns that higher oil prices from the Middle East conflict could lift inflation.
Rate Outlook Remains Uncertain
The Fed debate appeared divided.
Some policymakers saw inflation moving back toward the Fed’s 2% target over time. Others warned that inflation could remain elevated due to AI-related demand, the Iran conflict, or tariffs.
Kalchev said the June Fed minutes were less hawkish than markets had feared.
Coinbase Legal Chief to Step Down
Outside of macro and geopolitical news, Coinbase also drew attention after Chief Legal Officer Paul Grewal announced plans to step down.
Grewal had played a major role in Coinbase’s legal battle with the U.S. Securities and Exchange Commission. The SEC dismissed its 2023 lawsuit against Coinbase last year.
Altcoins Mostly Follow Bitcoin Higher
Most major altcoins also rose alongside Bitcoin.
Ethereum gained 0.6% to $1,749.50, while XRP climbed 0.6% to $1.0975.
Solana advanced 1.2%, Cardano added 0.4%, and Dogecoin rose 1.4%.
