Bitcoin and Ethereum Rise as Oil Prices Fall on US-Iran De-Escalation Hopes

Bitcoin (BTC) and Ethereum (ETH) climbed on July 27 as easing geopolitical tensions between the United States and Iran improved investor sentiment across the cryptocurrency market. Bitcoin gained 1.75%, while Ethereum advanced 4.63%, as traders responded to reports that Washington had paused military strikes and could resume diplomatic talks with Tehran.

The shift in sentiment also triggered a sharp decline in oil prices. Murban crude dropped around 10% to $97 per barrel, while West Texas Intermediate (WTI) fell 5.6% to $83 and Brent crude slipped 6.5% to $90. The decline followed comments from U.S. envoy to the United Nations Mike Waltz, who said President Donald Trump was allowing room for negotiations. Reports also suggested military advisers recommended de-escalation after the campaign achieved its objectives.

The prospect of renewed diplomacy has boosted risk assets, including cryptocurrencies, after two weeks of conflict weighed heavily on market confidence and fueled concerns over global energy supplies.

Bitcoin was trading near $65,447 at the time of writing, supported by approximately $17 billion in daily trading volume, according to CoinMarketCap. Analysts believe continued buying could drive BTC toward the recent high of $66,956, provided it remains above the middle Bollinger Band support near $64,442. Market analyst DaanCrypto noted that a breakout above $66,956 could open the path toward the 200-day EMA around $72,000, while a renewed pullback may send Bitcoin back to the key $60,000 support level. An RSI reading of 54 continues to favor a constructive long-term outlook.

Ethereum also extended its rally, reaching $1,981—its highest level since early June. Strong buying activity, reflected by three consecutive days of positive volume and a Chaikin Money Flow (CMF) reading of 0.09, suggests bulls remain in control. A decisive move above the $2,000 psychological barrier could pave the way for a rally toward $2,240, while the strengthening ADX indicator signals improving trend momentum.

Institutional demand has also improved. SoSoValue data shows Bitcoin ETFs recorded $33.79 million in inflows during the week ending July 24, while Ethereum ETFs attracted $103.9 million. Investors will now watch developments in U.S.-Iran negotiations and the Federal Reserve's July 29 policy meeting, as a hawkish stance could temporarily weigh on crypto market sentiment.