Bitcoin Surges to US$66K Following U.S.-Iran Deal, Strategy Buys US$100 Million Worth of BTC
Bitcoin Rises Back Above $66,000 After Positive Market News
Bitcoin made a strong comeback on Monday, climbing above $66,000 after several weeks of falling prices. The price increase happened mainly because of positive news about a peace agreement between the U.S. and Iran, along with Strategy buying another $100 million worth of Bitcoin.
By Monday afternoon, Bitcoin was up 1.8%, trading at around $66,468 after hitting some of its lowest prices earlier this month.
U.S. and Iran Agreement Helps Markets
On Sunday, the United States and Iran announced a new agreement to reduce tensions between the two countries. The official signing will happen on Friday.
As part of the agreement:
- Both countries will stop hostile actions immediately
- The Strait of Hormuz, an important route for global oil transport, will reopen fully within 30 days
- Talks about Iran’s nuclear program and frozen assets will begin
Investors reacted positively. U.S. stock markets went up, oil prices dropped more than 4%, and investors moved money into safer government bonds.
Strategy Buys More Bitcoin
Strategy, the company with the world’s largest corporate Bitcoin holdings, bought 1,587 Bitcoin between June 8 and June 14.
- Average buying price: $63,024 per Bitcoin
- Total purchase amount: About $100 million
The company paid for this by selling 1.73 million shares, raising about $209 million. It still has around $1.1 billion in cash available.
According to co-founder Michael Saylor, Strategy now owns 846,842 Bitcoin, worth around $56 billion.
- Average purchase price: $75,656 per Bitcoin
- Total spent so far: Around $64.1 billion
Bitcoin ETF Outflows Continue
Money leaving spot Bitcoin ETFs slowed down last week, but investors are still pulling funds out.
- Total withdrawals last week: $315.8 million
- Previous four weeks saw over $1 billion leaving each week
This is now the fifth straight week of investors pulling money out of Bitcoin ETFs, which has slowed Bitcoin’s price growth.
Some analysts believe investors are moving money from crypto into AI-related stocks.
Important Bitcoin Price Levels
Crypto analyst Ali Martinez said Bitcoin successfully broke an important resistance level at $64,360.
He believes that if the price keeps rising, the next target could be $67,630.
Another analyst, Ardi, who has been bearish on Bitcoin, said Bitcoin dropping below $60,000 and then recovering is unusual during a bear market.
The only similar case happened in 2018, when Bitcoin briefly recovered before continuing to fall.
Although Ardi still expects prices to drop further, he admitted that Bitcoin recovering to $66,500 is an unusual sign.
What Happens Next?
Bitcoin is still trading below important long-term technical levels, and many investors are waiting for more signs before deciding whether the market has truly found its bottom.
