Cryptocurrency prices rose during trading on Monday, supported by improved investor sentiment following the announcement by Washington and Tehran of an agreement to halt the exchange of attacks, ahead of the resumption of peace talks scheduled for this week, which will address a number of issues, including the Strait of Hormuz and other regional matters.
Bitcoin, the world’s largest cryptocurrency by market capitalization, rose to trade at $60,025.50, recording gains of $609.75, or 1.07%, compared to its previous close.
Despite this rise, Bitcoin is still on track to record a monthly loss of more than 18% during June, amid continued pressure on the digital asset market in recent weeks.
CoinGlass data also indicates that Bitcoin may end the second quarter of the year with a decline of nearly 12%, after falling by about 22% during the first three months of the year, reflecting the continued sharp fluctuations in the cryptocurrency market since the beginning of the year.
In the same context, other major cryptocurrencies recorded limited gains during Monday's trading, with Ethereum rising to $1,578.32, an increase of $13.85, or 0.89%, while Ripple climbed to $1.0462, achieving gains of $0.007, or 0.07%.
The cryptocurrency market is significantly affected by global geopolitical and economic developments. Indicators of declining geopolitical risks boost investor appetite for high-risk assets, particularly digital currencies. Conversely, uncertainty and heightened tensions drive investors toward safer assets, increasing volatility in the cryptocurrency market.
Bitcoin’s movements also remain a key indicator of the direction of the cryptocurrency market, given its large share of the sector’s market capitalization, making its performance directly influential on the movement of most other digital currencies.
