Bitcoin hits a two-week high above $65,500 as the US-Iran deal sends oil sliding

Bitcoin reached a two-week high, surpassing $65,500 on May 17, 2024, as a potential US-Iran peace deal eased geopolitical tensions and influenced oil prices. The prospect of a reopened Strait of Hormuz, a critical oil chokepoint, led to a decline in oil prices, shifting investor sentiment towards riskier assets like Bitcoin. This move away from oil as a geopolitical hedge suggests a broader market recalibration. Analysts noted that the de-escalation of tensions typically benefits assets perceived as more volatile. The price surge in Bitcoin occurred as oil futures for Brent crude dropped by over 2% in early trading. This correlation highlights the interconnectedness of global events and their impact on diverse asset classes. The market is closely watching further developments in the US-Iran negotiations and their implications for regional stability and energy markets.