NEW YORK — Bitcoin climbed back above $66,000 on Monday as investors returned to riskier assets following the weekend agreement to end the war between the United States and Iran. The rebound provided a measure of relief for a cryptocurrency that has spent much of 2026 under pressure after suffering one of its steepest declines in years.
The rally followed President Donald Trump’s announcement Sunday that the United States and Iran had reached an agreement to end hostilities. The news triggered a broad market response, lifting stocks while pushing oil prices sharply lower. Bitcoin joined the risk-on rally as traders moved back into speculative assets.
Even after Monday’s gain, Bitcoin remains far below its record levels. The cryptocurrency reached an all-time high near $126,000 in October 2025 before entering a prolonged decline. By early June, Bitcoin had fallen to roughly $60,000, representing a drop of more than 50% from its peak and marking its deepest drawdown since the crypto downturn of 2022.
Several factors contributed to the decline. Investors withdrew more than $5 billion from Bitcoin exchange-traded funds since mid-May, the longest streak of ETF outflows on record. At the same time, inflation climbed to a three-year high while the Federal Reserve maintained a restrictive interest-rate stance, reducing investor appetite for speculative investments.
Sentiment also weakened when Michael Saylor’s Strategy, one of Bitcoin’s most prominent corporate supporters, sold a portion of its holdings for the first time since 2022, raising concerns among traders who had viewed the company as a permanent buyer.
Wall Street remains sharply divided over Bitcoin’s future. Standard Chartered analyst Geoffrey Kendrick has steadily lowered his forecast, reducing his year-end 2026 target from $300,000 to roughly $100,000. Kendrick cited weaker corporate demand and slower ETF inflows.
Others remain optimistic. Bernstein continues to project Bitcoin reaching $150,000 by late 2026. Citigroup analysts have outlined a base-case target near $143,000, while JPMorgan’s fair-value models suggest approximately $170,000. Among major forecasters, Fundstrat’s Tom Lee remains the most bullish, maintaining a target of $250,000.
Despite those forecasts, short-term sentiment remains cautious. Prediction markets continue to assign meaningful odds that Bitcoin could fall below $60,000 again before the end of the year.
Historically, Bitcoin has followed a cyclical pattern tied to its halving events, which reduce the rate at which new coins are created. Previous cycles have often featured sharp rallies followed by extended declines before eventually recovering. While the current downturn has been severe, it remains less dramatic than the collapse of 2022, when Bitcoin lost more than 75% of its value.
For everyday investors, Bitcoin increasingly behaves less like the independent “digital gold” once envisioned by supporters and more like a high-risk technology asset. Its price movements have become increasingly correlated with stock markets, interest-rate expectations and broader investor sentiment.
The rapid growth of Bitcoin ETFs has also tied the cryptocurrency more closely to traditional retirement and brokerage accounts, meaning its gains and losses are now felt by a much broader group of investors than during previous cycles.
Whether Monday’s move marks the beginning of a sustained recovery remains uncertain. Bitcoin has staged several strong rebounds during this downturn only to retreat again. The easing of geopolitical tensions removed one source of market anxiety, but inflation remains elevated and the Federal Reserve continues to signal patience on rate cuts.
For now, Bitcoin is moving higher again. Whether it can sustain that momentum — and eventually challenge its previous record highs — remains one of the most closely watched questions in financial markets.
JBizNews Desk
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