Bitcoin Crashes Back to $63,000 After Brief Rally Above $65,500

Bitcoin has retreated to around $63,270 after briefly rising above $65,500 on Monday. The cryptocurrency is now down about 3% over the past day, according to CoinGecko data.

The brief rally came as financial markets reacted positively to reports of paused military strikes between the United States and Iran, reducing immediate concerns over a wider regional conflict.

However, investor attention soon returned to macroeconomic developments, with the Federal Reserve's latest policy decision looming. Treasury yields remained elevated, and expectations for interest rates to remain higher for longer weighed on risk assets.

Many traders treated the move above $65,000 as an opportunity to lock in short-term profits before the Fed announcement, leading to selling once Bitcoin slipped below nearby technical support levels.