Bitcoin remained pinned near the $65,000 level through Monday as a relief rally in risk assets paused, leaving traders to weigh eased tensions between the United States and Iran against an upcoming Federal Reserve policy decision that could set the immediate direction for digital assets.
The largest cryptocurrency by market capitalization reclaimed $65,000 following a pause in US-Iran strikes, which revived demand for risk assets at the start of the week. Data showed bitcoin trading around $65,155, a gain of roughly 1%, according to CryptoSlate. Ether outpaced bitcoin, climbing about 4% to approximately $1,964. Despite the rebound, market participants cautioned that the advance bore the hallmarks of a relief rally that could quickly reverse depending on the outcome of Wednesday's Federal Open Market Committee (FOMC) meeting.
The broader macroeconomic environment remained jittery and filled with cross-currents. US inflation data and the recent flare-up in hostilities between the US and Iran have kept risk assets in an unpredictable state, Cointelegraph reported, while retreating oil prices and a 10-year Treasury yield hovering near 4.7% added additional variables for investors to digest. Bitcoin demonstrated relative resilience against the churn in traditional markets; the token held steady near $65,000 even as Nvidia and other AI-linked equities sold off sharply, CoinDesk observed.
Sentiment in the derivatives market hinted that participants were positioning for a muted reaction despite the high-stakes macroeconomic calendar. The put/call ratio declined to roughly 0.52 from 0.76 in late June, and the price of one-week downside protection collapsed, indicating that bitcoin options traders were actively dropping their hedges ahead of the Fed meeting, according to CoinDesk. That shift suggests the options complex is priced for a comparatively quiet week, even as spot traders remain on edge.
Spot-market analysts warned that the current equilibrium may not hold for long. This week's Fed decision could determine whether bitcoin finally breaks higher or revisits June's lows, analysts noted in CoinDesk. In the meantime, CoinEx's Jeff Ko sees bitcoin staying range-bound near $65,000 while retreating crude prices, a 4.7% 10-year yield, and a heavy slate of mega-cap corporate earnings set the broader tone for risk appetite, CoinDesk reported. With rate-path expectations still dividing investors and geopolitical headlines lingering, the cryptocurrency appears caught between short-term relief and the uncertainty of a pivotal monetary-policy verdict.