The cryptocurrency market kicked off Monday with an optimistic surge, witnessing a total market capitalization increase of 1.8%, effectively adding almost $40 billion to reach $2.24 trillion. Bitcoin took the lead in this upswing, achieving a two-week peak at around $65,923.
Other notable cryptocurrencies, such as Ethereum, XRP, Solana, and BNB, also enjoyed gains ranging from 2% to 3%.
What is driving the crypto market up today?
U.S.-Iran Peace Agreement Finalized
A significant factor contributing to today’s crypto market surge is U.S. President Donald Trump’s announcement about a deal established with Iran. This agreement outlines plans for reopening the Strait of Hormuz and ceasing the naval blockade that has impacted global energy supplies.
A formal signing is scheduled for June 19 in Switzerland.
This announcement quickly alleviated worries about a potential oil supply crisis, with Brent crude prices reportedly dropping by over 4%, sparking a rally in both traditional and cryptocurrency markets.
Selling Pressure on ETF Easing
Another encouraging aspect is the reduced selling pressure on Bitcoin ETFs. U.S. spot Bitcoin ETFs have experienced ongoing outflows for the last month.
On June 12, spot Bitcoin ETFs saw net inflows of around $86 million, indicating fresh interest from investors. BlackRock’s IBIT took the lead with approximately $58 million in inflows, with Fidelity and Bitwise also contributing positively.
The resurgence in ETF demand has bolstered market sentiment and provided further support for Bitcoin’s recent rebound.
$340 Million in Liquidations
A significant liquidation event propelled the market rally. Data from CoinGlass indicates that over 102,000 traders faced liquidations in the past 24 hours, totaling around $339 million.
The largest single liquidation occurred on Binance, involving a BTC/USDT position worth $6.1 million that was forcibly closed.
Bitcoin Regains Crucial Levels
Bitcoin spearheaded the recovery, rising to nearly $65,900—a level not seen in two weeks. This rebound follows several weeks of intense selling pressure after last week’s decline.
Just a few days ago, traders were anxious about a deeper correction when Bitcoin fell below $60,000.
Overall market sentiment has improved, with the Crypto Fear & Greed Index moving from the Extreme Fear category back to Fear.
Altcoins Participate in the Upswing
The recovery extended beyond Bitcoin. Ethereum surged past $1,720, XRP hovered around $1.19, and Solana neared $71. Cardano grew nearly 5%, while Hyperliquid (HYPE) and Zcash experienced gains ranging from 9% to 15%.
The Altcoin Season Index also climbed to 51, indicating that capital is starting to flow beyond Bitcoin.
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