Key facts
- Bitcoin price surpassed $65,000 amid easing U.S.-Iran tensions.
- Oil prices, including Brent crude, dropped significantly.
- Ether outperformed Bitcoin, approaching the $2,000 level.
- DeFi tokens like AAVE and LDO experienced notable gains.
- The probability of a Federal Reserve rate hike decreased.
Cryptocurrencies steadied and rose as a pause in U.S.-Iran hostilities over the Strait of Hormuz eased inflation fears and boosted risk assets. Bitcoin climbed back above $65,000, while Ether outperformed, approaching the $2,000 level. The de-escalation led to a significant drop in oil prices, with Brent crude falling over 7% to around $87 per barrel. The shift in geopolitical sentiment also moderated expectations for a Federal Reserve interest rate hike, with markets now pricing a 30.5% chance of a move this week, down from 37.4%. DeFi tokens were standout performers, with AAVE surging 9% and LDO rising 9.39%. Ondo extended its recent run with a 7% gain, and PUMP was Monday's top performer, increasing by 12.24% to push its market cap toward $800 million. Derivatives data indicated that short positions were largely liquidated due to Bitcoin's turnaround, while open interest in BTC futures saw a slight pullback. ETH futures, however, showed increased open interest and positive funding rates, suggesting bullish sentiment. Broader market sentiment remains somewhat bearish, with only a few altcoins showing positive 24-hour cumulative volume delta. Bitcoin's implied volatility index remained near a two-month low, signaling market stability, and the options skew indicated a cooling downside bias.