Bitcoin Climbs Over 1% as US-Iran Truce Eases Inflation Concerns Ahead of Fed Decision

VG Markets · 2026-07-28T02:47:11Z
Bitcoin Climbs Over 1% as US-Iran Truce Eases Inflation Concerns Ahead of Fed Decision

Bitcoin rose about 1.1% to $64,872.00 as of 17:20 ET on Monday, recovering from last week's volatile trading after a weekend pause in U.S.-Iran military activity pushed oil prices lower and eased near-term inflation concerns, supporting broader market sentiment across risk-sensitive assets ahead of this week's Federal Reserve meeting.

Recent Market Developments

  1. The United States conducted military operations against Iran for 13 consecutive days, while Iran responded with strikes targeting U.S. bases in neighboring countries. Tensions intensified after attacks on commercial shipping near the Strait of Hormuz disrupted a June interim peace agreement.
  2. According to Reuters, oil prices had risen by around 20% over the previous two weeks before retreating sharply following the temporary pause in hostilities, with Brent up 20.6% and WTI up 19.2% during that earlier period.
  3. President Trump reportedly paused plans for further military escalation after meeting senior advisers, with reports citing concerns over U.S. air-defense stockpiles.
  4. U.S. Ambassador to the United Nations Mike Waltz said discussions with Iran remain "ongoing... at every level."

Key Event This Week: The Federal Reserve

The CME FedWatch Tool currently indicates roughly a 62% probability that the Federal Reserve will keep interest rates unchanged this week, although market expectations have shifted during the month amid evolving geopolitical developments.

Market participants are also expected to closely monitor comments from Federal Reserve Chair Kevin Warsh, whose recent policy remarks and operational review of the Fed's communications and inflation framework have attracted market attention.

Cross-Asset Performance

  1. Gold (XAU/USD): -0.70%, trading near $4,048
  2. Ethereum: +1.1% to $1,947.33
  3. XRP: -1.3% to $1.0899
  4. Solana: +0.2%
  5. Cardano: -5.0%
  6. Dogecoin: -1.1%

The differing performance across asset classes reflects varying market responses to recent geopolitical developments and expectations for future monetary policy.

Market Focus

This week's Federal Reserve policy decision, earnings reports from major U.S. technology companies, and developments surrounding U.S.-Iran relations remain among the key events being monitored by financial markets. Changes in broader market sentiment may also influence cryptocurrency prices alongside movements in other major asset classes, including oil, gold, and equities.