Bitcoin rose on Sunday, recovering from sharp losses earlier in the weekend, after reports indicated that the United States and Iran were closer to a possible agreement that would ease tensions in the Middle East.
The world’s largest cryptocurrency rose 2.87% to $76,810.50 by 11:43 a.m., after falling to nearly $74,000.00 on Saturday.
Market sentiment improved following US President Donald Trump's statement that an agreement between the United States, Iran and several other countries had been largely negotiated, pending final approval.
Trump indicated that the proposed agreement would include reopening the Strait of Hormuz, a vital shipping lane that handles a large share of global oil exports.
Reports over the weekend indicated that negotiators were discussing a 60-day ceasefire extension, lifting sanctions on Iran, and taking measures to restore commercial shipping through the Strait.
These developments have helped to alleviate some of the concerns about the potential disruption of global energy supplies, which had been weighing on risky assets in recent weeks.
Bitcoin had come under pressure earlier this month, as escalating tensions between Washington and Tehran drove investors toward traditional safe havens and led to increased volatility in financial markets.
The cryptocurrency remains below the record levels it reached earlier this year, as traders continue to monitor geopolitical developments and broader market sentiment.
Meanwhile, investors are also awaiting further developments regarding US digital asset policy, after lawmakers in Washington put forward several proposals concerning the regulation of cryptocurrencies and the Federal Reserve's Bitcoin reserves.
The cryptocurrency market has also benefited from continued institutional participation through Bitcoin spot exchange-traded funds (ETFs), which have become a major source of demand since their approval in the United States.
Market participants are closely monitoring money flows and trading activity, looking for signs of renewed investor interest following recent volatility.
Attention is also turning to upcoming economic data and Federal Reserve policy signals, as traders assess how interest rate expectations could affect demand for risk-sensitive assets, including cryptocurrencies.
Cryptocurrency prices today: Altcoins rise following Bitcoin
As for other alternative currencies, most of them rose in tandem with Bitcoin.
Ethereum, the world's second-largest cryptocurrency, rose 4.42% to $2,120.01.
XRP, the world's third-largest cryptocurrency, rose 3.81% to $1.36.
Solana and Caradano both rose by 5.24% and 3.19% respectively.
As for the meme currency category, Dogecoin rose by 3.23%.
