New York — Bitcoin held above $77,000 on Monday as cryptocurrency markets rallied on growing expectations that the United States and Iran could reach a peace agreement, potentially reopening the Strait of Hormuz and easing geopolitical tensions in the Gulf region.
The world's largest cryptocurrency by market capitalization rose 1.6% to $77,500 over the 24-hour period, while ether added 1.4%. The broader CoinDesk 20 index gained 1.56%, reflecting renewed risk appetite across digital asset markets.
Peace Deal Odds Climb
Negotiators from both nations met in Doha as prediction markets sharply increased the probability of a near-term agreement. Polymarket data showed the likelihood of a permanent deal reaching 37% by month-end, up from roughly 14% on Friday. The odds stand at 46% by early June and 72% by the end of July.
Market Implications
The peace talks have significant implications for crypto markets. A potential memorandum ending the current war and reopening the Strait of Hormuz would likely reduce Bitcoin's \"war hedge\" premium in the short term. However, analysts suggest the longer-term case for BTC strengthens as nations quietly diversify away from the dollar in a more multipolar Gulf region.
Ethereum Foundation Announcement
In separate developments, Ethereum co-founder Vitalik Buterin announced the foundation would choose "longevity over breadth" and reduce ETH sales. The foundation holds roughly 0.16% of all ETH, well below the 10% to 50% typical for other blockchain foundations.
