Bitcoin Rebounds Sharply as Middle East Tensions Ease, Strategy Doubles Down on BTC

The familiar weekend crypto panic followed by a Monday recovery has played out once again in 2026. Bitcoin dropped roughly 4% between late Saturday and early Monday morning after U.S. Vice President J.D. Vance departed Pakistan without securing an Iran peace agreement, and President Trump announced a blockade of the Strait of Hormuz. However, those losses were fully erased by Monday afternoon in U.S. trading.

By the time American stock markets closed, bitcoin was changing hands around $73,400, representing a gain of more than 3% over the previous 24 hours. Ethereum, Solana, and XRP also posted positive returns, though each lagged bitcoin's performance slightly. The broader crypto market's recovery coincided with a rebound in traditional markets, where the Nasdaq climbed 1.2% and WTI crude oil retreated to $98 per barrel after briefly surging past $105 on Sunday amid geopolitical fears.

Crypto-related equities led the charge among individual stocks. Circle surged 11%, Gemini gained 9%, and both MARA Holdings and Bullish rose just over 8%, reflecting renewed investor confidence across the digital asset sector.

Meanwhile, Michael Saylor's Strategy continued its relentless bitcoin accumulation strategy. The firm acquired approximately 13,927 BTC last week at a total cost of $1 billion, notably without issuing any common stock. Instead, Strategy funded the purchases entirely through $1 billion in STRC preferred stock, which carries an 11.5% yield. Monday's trading activity in STRC signaled that further large purchases may be imminent. Volume in the preferred shares approached a record $770 million before 3 p.m. ET, and with the stock holding steady at par value, analysts interpreted the unusual activity as a sign that Strategy is preparing another round of significant bitcoin buying in the days ahead.