Global stock indices and Bitcoin prices surged Monday after reports of a US-Iran peace agreement ignited a broad 'risk-on' rally. US stock index futures jumped, with the Financial Times reporting global stocks powering to record highs. The catalyst was an interim deal between Washington and Tehran to reopen the Strait of Hormuz, according to Bloomberg.
Bitcoin recaptured the $65,000 level, climbing more than 3% to trade above $64,500 and the 100-hour simple moving average, with a bullish trend line forming at $64,200. The Block attributed the rally to improving risk sentiment following the peace deal. Meanwhile, oil prices crashed as the agreement promised to ease supply disruption fears.
The rally extended to other cryptos, with XRP consolidating above $1.18 and targeting the $1.20 resistance zone. The positive mood also inflated expectations for South African monetary policy, as traders scaled back bets on additional rate hikes after lower oil prices reduced inflationary pressures, Bloomberg reported.
Analysts cautioned that the market has not yet tested the durability of the peace deal or faced potential implementation hurdles. A collapse in negotiations could trigger a violent reversal of these gains, particularly for oil-exposed currencies and equities.