Key Takeaways

• Bitcoin barely moves: The world’s largest crypto rose just 0.4% to $66,116.4 as caution prevailed ahead of two major catalysts.
• Recovery fading: Bitcoin had bounced in recent sessions on Iran peace deal optimism, but the upside is stalling.
• Iran MOU signing Friday: Both sides agreed to halt hostilities, reopen Hormuz, and lift the U.S. naval blockade; nuclear talks to follow.
• More deal details awaited: Markets are holding out for specifics before making bigger moves.
• Fed decision Wednesday: The central bank’s first meeting under new Chair Kevin Warsh is widely expected to result in a hold.
• Warsh’s outlook the key watch: Investors will scrutinize the Fed’s economic projections and rate guidance given Iran war disruptions.
• BOJ hike weighs: The Bank of Japan’s 25 basis point hike to 1% and hawkish outlook added pressure to risk assets.
• ETF outflows slow further: Investors pulled $64.09 million from spot Bitcoin ETFs Monday — much smaller than prior weeks.
• Six straight weeks of outflows: The institutional selling streak continues despite the deceleration.
• AI rotation persists: Investors continue pivoting from crypto to sectors with clearer fundamentals.
• Ether leads altcoins: Rose 2.6% to $1,763.39.
• XRP jumps 3.8%: To $1.2274, outperforming Bitcoin significantly.
• Solana gains 3.4%: Strong rebound continues.
• Cardano and BNB slip: Down 2% and 0.5% respectively.
• Memecoins struggle: Dogecoin fell 1.6%; $TRUMP shed 4.3%.

Bitcoin steadied on Tuesday after recovering some ground in recent sessions, as caution before the signing of a U.S.-Iran peace deal and an upcoming Federal Reserve meeting deterred big moves.

Continued capital outflows from spot exchange-traded funds also kept crypto markets subdued, while an interest rate hike and hawkish outlook from the Bank of Japan also weighed.

Bitcoin rose 0.4% to $66,116.4 by 01:46 ET (05:46 GMT).

Bitcoin Recovery Fades With Fed Meeting and Iran Peace in Focus

Bitcoin regained some ground in recent sessions as risk appetite was boosted by the United States and Iran agreeing to a deal that will end their war and reopen the Strait of Hormuz.

The two sides are set to sign a memorandum of understanding on Friday, with markets largely holding out for more details on the agreement. Reports showed the United States and Iran had agreed to halt hostilities, reopen the Strait of Hormuz, and lift a U.S. naval blockade against Tehran.

The two sides also agreed to hold more talks over Iran’s nuclear activities.

Beyond geopolitics, focus this week is squarely on the Federal Reserve’s interest rate decision on Wednesday. The central bank is widely expected to leave rates unchanged in its first meeting under new Chair Kevin Warsh.

Investors will be closely watching the Fed’s outlook on rates and the economy, especially in the face of increased disruptions stemming from the Iran conflict.

Investors continued to pull out of Bitcoin ETFs this week, albeit at a slower pace than seen in previous weeks. Investors pulled $64.09 million from spot ETFs on Monday, SoSoValue data showed.

This came after five straight weeks of outflows, with investors seen pivoting out of crypto and into sectors with clearer fundamentals — such as artificial intelligence stocks.

Crypto Price Today: Altcoins Push Higher, But Recovery Limited

Broader crypto prices mostly advanced on Tuesday, although their overall recovery was limited by a dearth of positive cues for the sector.

Ether, the world’s second-largest cryptocurrency, rose 2.6% to $1,763.39, while XRP rose 3.8% to $1.2274.

Solana rose 3.4%. Cardano fell 2%, while BNB fell 0.5%.

Among memecoins, Dogecoin fell 1.6%, while $TRUMP shed 4.3%.