Bitcoin rose back above $65,000 as the United States and Iran paused military strikes for a second consecutive day, a development that pushed oil prices lower and coincided with gains across major crypto assets.

Bitcoin (BTC), the largest cryptocurrency by market value, traded at $65,343.72 and was up about 1.2% over 24 hours. Ether (ETH) gained more than 3% to trade near $1,950, outperforming BTC. Other top 10 tokens, including solana (SOL) and XRP (XRP), advanced between 1% and 2%.

The move came as risk-on peace trades returned after the U.S. and Iran held fire on Sunday. Futures tied to West Texas Intermediate crude opened lower on Monday and were trading around 5% down at $85 at the time of writing. Futures linked to the Nasdaq and S&P 500 were about 0.5% higher. Currency markets also reflected a risk-on tone, with the Australian dollar and the euro rising against the U.S. dollar.

Oil prices are closely watched by crypto traders because higher energy costs can feed into inflation expectations, which in turn affect how investors price the path of interest rates. Digital assets have often traded like high-beta risk assets during macro-driven sessions, making shifts in crude, equity futures and the dollar relevant for short-term sentiment.

The United States and Iran halted military strikes against each other for a second day, creating space for a possible diplomatic breakthrough. The war, which began in late February, moved into a fragile ceasefire in the second quarter before that truce quickly unraveled.

Iran reportedly said it would continue to stop airstrikes as long as the U.S. did the same, marking a tenuous start to what appears to be another peace process.

"Prices are also responding to macro developments," Vikram Subburaj, CEO of India-based FIU-registered Giottus exchange, said in an email. "Brent crude’s 4.7% fall to $92.19 has eased some inflation concerns, but the July 28-29 Federal Reserve meeting remains the immediate risk. Markets are assigning a 36.3% probability to a 25-basis-point rate increase."

Subburaj added that ether’s gain of more than 3% shows some rotation into alternative cryptocurrencies. However, he said BTC dominance at 58.6% indicates the move has not yet become a broad-based altcoin trend. BTC dominance measures bitcoin’s share of the total crypto market value, so a high reading can show that capital remains concentrated in bitcoin even when some larger alternative tokens outperform over a single session.

Other market observers continued to focus on bitcoin’s four-year cycles, saying prices may be forming a bottom before the next major bull run.

"The time between each Bitcoin Halving and the bottom of the following Bear Market has been approximately 900 days. The current cycle is already at day 827. Based on this pattern, we can say that Bitcoin is already building its price bottom, with a potential final bottom forming sometime within the next two months," Joao Wedson, founder and CEO of analytics firm Alphractal, said on X.