Monday started on a bullish note for the cryptocurrency market, with the total market cap rising 1.8% and adding nearly $40 billion in value to reach $2.24 trillion. Bitcoin led the rally, climbing to a two-week high of around $65,923.
Other major cryptocurrencies, including Ethereum, XRP, Solana, and BNB, also posted gains of 2% to 3%.
So, why is the crypto market rising today?
U.S.-Iran Completed a Peace Deal
The biggest reason behind today’s crypto market rally is U.S. President Donald Trump’s announcement that a deal had been reached with Iran. The agreement includes plans to reopen the Strait of Hormuz and end the naval blockade that had disrupted global energy supplies.
A formal signing is expected on June 19 in Switzerland.
The news quickly eased fears of an oil supply shock, with Brent crude reportedly falling more than 4%, triggering a rally across both traditional and cryptocurrency markets.
ETF Pressure Begins Easing
Another bullish factor is the slowdown in selling pressure on Bitcoin ETFs. U.S. spot Bitcoin ETFs have seen continuous outflows for the past one month.
In fact, on June 12, spot Bitcoin ETFs recorded approximately $86 million in net inflows, signaling renewed investor interest. BlackRock’s IBIT led the way with about $58 million in inflows, while Fidelity and Bitwise also posted positive contributions.
The return of ETF demand has helped improve market sentiment and provided additional support for Bitcoin’s recent recovery.
$340 Million In Shorts Wiped Out
A major liquidation event fueled the rally. According to CoinGlass, more than 102,000 traders were liquidated during the past 24 hours, with total liquidations reaching approximately $339 million.
The largest single liquidation occurred on Binance, where a BTC/USDT position worth $6.1 million was forcibly closed.
Bitcoin Reclaims Key Levels
Bitcoin led the recovery, climbing to a two-week high near $65,900. The recovery comes after weeks of heavy selling pressure following last week’s losses.
Just days ago, traders feared a deeper correction after Bitcoin slipped below $60,000.
Meanwhile, the market sentiment has also improved, with the Crypto Fear & Greed Index moving out of the Extreme Fear zone and back into Fear.
Altcoins Join The Recovery
The recovery wasn’t limited to Bitcoin. Ethereum climbed back above $1,720, while XRP traded near $1.19 and Solana approached $71. Cardano gained nearly 5%, while Hyperliquid HYPEUSD and Zcash surged between 9% and 15%.
The Altcoin Season Index also jumped to 51, suggesting capital is beginning to rotate beyond Bitcoin.