Crypto markets began the week with a notably different tone after traders had recently been preparing for another escalation in geopolitical tensions. The United States and Iran held fire for a second consecutive day, oil prices fell by 5%, and risk appetite returned across markets. That shift in sentiment was the main backdrop for the latest move higher in digital assets, while a breakout in the ETH/BTC ratio added another closely watched market signal.

JUST NOW: The US paused its bombing of Iran after Omani officials visited Tehran Friday for talks. Iran has since halted its own retaliatory strikes. Both sides have signaled interest in returning to ceasefire negotiations. — Coin Bureau (@coinbureau) July 26, 2026

Bitcoin moved back above $65,000, Ethereum led gains among major crypto assets, and bearish traders were caught on the wrong side of the move. More than $200 million in crypto positions were liquidated over the past day, with the vast majority coming from short positions that were forced to cover. Short liquidations can add fuel to a rebound because traders betting on lower prices are forced to buy back into a rising market.

The rally appeared to be supported by improving macro conditions rather than speculation alone, marking a shift from the tone that had dominated the market in recent weeks.

Easing Geopolitical Tensions Support Risk Assets

The largest catalyst behind the market move came from outside crypto. A second day without new military strikes between the United States and Iran pushed oil prices sharply lower and encouraged investors to move back into risk assets. Lower oil prices can ease inflation concerns and reduce pressure on broader financial conditions, which is one reason crypto traders often monitor energy markets during geopolitical shocks. Bitcoin reclaimed the $65,000 level, while Ethereum rose more quickly, reviving discussion that the market may be entering an early stage of recovery.

Institutional demand also remained firm. Spot Bitcoin, Ethereum, Solana, and XRP ETFs recorded a combined $152 million in weekly inflows, despite minor outflows from Bitcoin ETFs earlier in the week. ETF flows have become an important gauge for crypto markets because they show how much regulated investment products are attracting or losing capital from traditional investors. Attention is also returning to Washington, where reports indicate that the final version of the CLARITY Act could arrive this week, although hurdles in the Senate remain.

Another closely watched development involves Strategy. The company has now gone four consecutive weeks without purchasing additional Bitcoin as it builds cash reserves ahead of earnings. Michael Saylor teased “another color” on social media, prompting speculation that another announcement may be approaching.

We’re gonna need another color. pic.twitter.com/AqZO5UeXDx — Michael Saylor (@saylor) July 26, 2026

BitMart also drew attention after the exchange announced plans to wind down operations after nearly nine years. The move followed recent exits by AscendEX and BitMEX. Similar patterns have appeared during previous bear markets, when weaker exchanges disappeared as liquidity dried up and stronger platforms later emerged after conditions stabilized. Many market participants still view exchange capitulation as a sign that the market may be moving closer to a long-term bottom.

EVERY BITCOIN BEAR MARKET ENDS WITH CASUALTIES. 2014 had Mt. Gox. 2018 had BitGrail. 2022 had FTX. Now BitMEX and BitMart are shutting down within days of each other. This confirms that the final phase has begun… pic.twitter.com/F6gWgOVG8n — Crypto Rover (@cryptorover) July 26, 2026

ETH/BTC Ratio Breakout Puts Ethereum in Focus

Bitcoin was trading around $65,300 to $65,500 after reclaiming the key $65,000 level. The broader crypto recovery was supported by improving sentiment, positive ETF flows, and heavy short liquidations, rather than excessive leverage from buyers.

Ethereum became a focal point of the move. The second-largest crypto asset was trading around $1,950 to $1,965 after gaining more than 4% in a day. More importantly, the ETH/BTC ratio climbed back toward 0.030 after breaking above a multi-month downtrend. The ratio measures Ethereum’s price relative to Bitcoin, so a rising ETH/BTC reading shows Ethereum outperforming Bitcoin even if both assets are moving higher.

The ETH/BTC ratio has historically strengthened before capital rotates into the wider altcoin market. In previous bull cycles, Ethereum outperformed Bitcoin before gains spread across larger altcoins and later into smaller projects. The pattern is not a guarantee, but it has appeared often enough to remain on traders’ radar.

Other signs of improving risk appetite also emerged. Shiba Inu rose roughly 25% over the past week, while long-term Bitcoin holders continued to show limited interest in selling. At the same time, discussion around quantum computing resurfaced, although many experts argue that governance remains a bigger challenge than any immediate technological threat.

The latest crypto market move reflects easing geopolitical tensions, falling oil prices, healthy ETF inflows, aggressive short liquidations, and a strengthening ETH/BTC ratio. Together, those factors present a stronger market backdrop than the one seen only a few days earlier, with traders now watching whether ETF demand, legislative progress, and relative Ethereum strength continue to hold as the immediate geopolitical pressure cools.