Market risk appetite improved after the US and Iran refrained from launching further attacks for the second consecutive day. Oil prices fell significantly on Monday, US stock index futures rose, and crypto assets rebounded in tandem, with Bitcoin regaining the $65,000 mark and Ethereum performing even stronger.

Oil price decline triggers rebound

As of press time, Bitcoin was up about 1.2% in the last 24 hours, trading at around $65,455. Ethereum rose more than 3%, approaching $1,950. The top ten tokens, including SOL and XRP, also generally rose between 1% and 2%.

WTI crude oil futures gapped lower on Monday, falling about 5% to around $85. Nasdaq and S&P 500 futures both rose about 0.5%. The Australian dollar and euro strengthened against the US dollar, also reflecting a recovery in risk appetite.

Ceasefire expectations ease inflationary pressures

The report noted that the military standoff between the US and Iran entered its second day, leaving room for diplomatic maneuvering. Iran reportedly stated that it would continue the suspension of operations as long as the US does not resume airstrikes.

Vikram Subburaj, CEO of Indian cryptocurrency exchange Giottus, said that Brent crude oil fell 4.7% to $92.19, easing some inflation concerns. However, the Federal Reserve meeting on July 28-29 remains the market's short-term focus.

ETH outperformed BTC

Subburaj believes that Ethereum's more than 3% increase indicates that some funds are shifting to crypto assets other than Bitcoin. However, Bitcoin's market capitalization share is still 58.6%, suggesting that this is not yet a full-blown altcoin rally.

Meanwhile, some analysts continue to focus on Bitcoin's four-year cycle. Joao Wedson, founder of on-chain analytics firm Alphractal, stated that the current cycle has reached its 827th day, nearing the lower end of its historical range, and the market is observing whether it is entering a new bottoming phase.