Bitcoin price climbed above $65,000 as easing ETF outflows and a U.S.-Iran peace deal provided support, while a hawkish Fed under Chair Kevin Warsh and rising rate-hike expectations continued to pressure risk assets.
Bitcoin price climbed above $65,000 Monday morning, caught between a sixth straight week of spot ETF outflows, a hawkish Federal Reserve debut, and a U.S.-Iran peace deal that gave risk assets a short-lived lift.
The move higher came as U.S. and Iranian officials reported progress at peace talks in Switzerland, building on last week’s signed memorandum of understanding that formally ended more than 100 days of conflict.
The deal reopened the Strait of Hormuz, through which roughly a fifth of the world’s oil flows, and sent crude prices to three-month lows. The initial geopolitical relief pushed the bitcoin price to $66,230 late last week before the macro picture reasserted itself.
That reassertion came in the form of new Fed Chair Kevin Warsh, whose first FOMC meeting landed as a hawkish reset. Warsh expressed a strict commitment to returning inflation to the 2% target — a stance shaped in part by May CPI coming in at 4.2%, well above target.
