Bitcoin steadies above $65,500 after U.S.-Iran MoU news

Bitcoin steadied above $65,500 on Tuesday after an intraday plunge to $65,301 that erased about 1.4% of its value, according to market data.

The top cryptocurrency briefly rose above $67,000 early in the session, trended down to just under $65,700, rallied nearly back to $67,000 and then dropped to an intraday low of $65,301. By 2:30 p.m. EST it was trading just under $65,919 after a second rally stalled near $66,148.

The retreat cut bitcoin’s market capitalization to about $1.32 trillion. The swings triggered roughly $81 million in derivatives liquidations over 24 hours — about $61 million on long positions and nearly $20 million on shorts. The combined market value of digital assets fell about 1.4%.

Global equities moved higher on news of a U.S.-Iran memorandum of understanding. Asian and European indexes rallied, and South Korea’s Kospi gained more than 1%.

Brent crude slipped below $80 a barrel as market participants anticipated the agreement could reopen the Strait of Hormuz and allow ships stuck in the Persian Gulf to resume shipments.

Details of the memorandum remain unclear. President Donald Trump and senior administration officials expressed optimism the pact could end the conflict and restore normal shipping through the strait. Market participants reacted to the prospect of lower oil risk premiums and reduced regional threats to trade routes.

Santiment, a blockchain analytics firm, wrote that periods of geopolitical de-escalation tend to reduce risk premiums and prompt reallocations from defensive assets into higher-risk investments. The firm noted bitcoin often receives a large share of returning liquidity because of deep derivatives markets, broad accessibility and sensitivity to shifts in investor risk appetite. Santiment added that sustained geopolitical relief could support a more durable rally rather than a short-lived sentiment spike.