Bitcoin climbed back above $65,000 on Monday after the United States and Iran paused strikes over the Strait of Hormuz. The move eased immediate geopolitical pressure and sent oil prices lower. Markets now await the Federal Reserve's interest-rate decision scheduled for Wednesday.
The largest cryptocurrency rose about 1 percent to $65,155, according to data cited by CryptoSlate. Ethereum gained 4 percent to near $1,964. Brent crude fell more than 6 percent to around $90 a barrel as the temporary halt in hostilities reduced the risk premium in energy markets.
Futures markets priced roughly a one-in-three chance of a 25-basis-point rate increase at the Fed's two-day meeting that concludes Wednesday. That probability had risen sharply after last week's oil surge but eased following the weekend pause in strikes.
Options traders reduced near-term downside protection, with the one-week put-to-call ratio falling to 0.52. Longer-dated contracts continued to reflect elevated uncertainty ahead of Thursday's second-quarter GDP and personal consumption expenditures data.
The relief rally remains vulnerable to any renewed escalation between Washington and Tehran or a hawkish signal from Fed Chair Kevin Warsh.
