Bitcoin rises above $76,500 as Iran deal hopes support risk sentiment

Investing.com -- Bitcoin rose on Sunday, recovering from sharp losses earlier in the weekend after reports suggested the United States and Iran were moving closer to a potential agreement that could ease tensions in the Middle East.

The world’s largest cryptocurrency climbed 2.87% to $76,810.5 by 04:43 ET (08:43 GMT), after falling to nearly $74,000 on Saturday.

Market sentiment improved after U.S. President Donald Trump said a deal between the United States, Iran, and several other countries had been largely negotiated, subject to final approval.

Trump said the proposed agreement would include reopening the Strait of Hormuz, a critical shipping route that handles a significant portion of global oil exports.

Reports over the weekend indicated that negotiators were discussing a 60-day ceasefire extension, sanctions relief for Iran, and measures to restore commercial shipping through the strait.

The developments helped ease some concerns over potential disruptions to global energy supplies, which had weighed on risk assets in recent weeks.

Bitcoin had come under pressure earlier this month as escalating tensions between Washington and Tehran drove investors toward traditional safe-haven assets and increased volatility across financial markets.

The cryptocurrency remains below highs reached earlier this year, with traders continuing to monitor geopolitical developments and broader market sentiment.

Meanwhile, investors are also awaiting further developments on U.S. digital asset policy after lawmakers in Washington introduced several proposals related to cryptocurrency regulation and federal Bitcoin holdings.

The crypto market has also been supported by continued institutional participation through spot Bitcoin exchange-traded funds, which have become a key source of demand since their approval in the United States.

Market participants are closely watching fund flows and trading activity for signs of renewed investor interest following recent volatility.

Attention is also turning to upcoming economic data and Federal Reserve policy signals, with traders assessing how interest rate expectations could affect demand for risk-sensitive assets, including cryptocurrencies.