Bitcoin Soars Past $65,000 Amid Oil Price Plunge

Falling oil prices driven by easing tensions between the US and Iran have boosted risk appetite in the cryptocurrency market, pushing the Bitcoin (BTC) price above $65,000.

The geopolitical de-escalation in the Middle East has created a wave of relief in global markets, with crypto assets making a positive start to the week. As the US and Iran paused mutual attacks, the price of a barrel of Brent oil dropped from the $100 level to around $87. This has eased inflation concerns, leading investors to pivot back toward risk assets.

The majority of the $312 million in total liquidations over the last 24 hours came from short positions that failed to anticipate the price surge. On the macro front, the drop in oil prices has weakened the probability of a rate hike at the Fed’s meeting this week. According to CME FedWatch data, the expectation for a rate hike fell from 37.4% to 30.5%.

The decentralized finance (DeFi) sector also saw gains, with tokens such as Aave (AAVE) and Lido (LDO) becoming standout performers, gaining over 9%. This broad market recovery combined with the Altcoin Season index rising to 55 shows that investor sentiment is gradually improving.