Bitcoin climbed toward $65,000 on Monday as investors reacted to signs of possible diplomatic talks between the United States and Iran, despite another round of US military strikes.
The cryptocurrency recovered alongside US stock futures after US Secretary of State Marco Rubio said Washington remains open to a diplomatic solution with Iran. The remarks helped improve market sentiment even as tensions in the Middle East remained high.
.@SecRubio: “Iran is a rich country. One of the reason why Iran is in shambles is because every penny that this regime ever gets — be it through sanctions relief or through the oil they’re able to get out — they invest it in Hezbollah. They invest it in Hamas… They should be… pic.twitter.com/E3OrpuBAHa
— Rapid Response 47 (@RapidResponse47) July 20, 2026
The US Central Command confirmed another wave of strikes targeting Iranian military command centres, air defence systems, missile and drone launch sites, coastal surveillance facilities, and communications networks.
READ ALSO: Oil, FED Uncertainty, and Nvidia Earnings Put Crypto Under Market Pressure
Can diplomacy outweigh rising geopolitical tensions?
Rubio said the US is still willing to pursue diplomacy with Iran despite the ongoing conflict. However, he maintained that Washington would continue responding as long as Iran sought to control the Strait of Hormuz, a key global shipping route.
President Donald Trump also said Iran had suffered significant military damage and claimed the country no longer posed the same level of threat. He reiterated that Iran would not be allowed to obtain a nuclear weapon and said the situation would continue to be monitored.
Oil markets reacted immediately, with Brent crude climbing above $90 per barrel. Meanwhile, the US Dollar Index (DXY) slipped to 100.71, providing support for risk assets such as Bitcoin.
ETF inflows continue to strengthen Bitcoin demand
Beyond geopolitical developments, institutional demand remained a major driver for Bitcoin.
Spot Bitcoin exchange-traded funds recorded more than $500 million in net inflows last week, with BlackRock leading the purchases. The steady inflows followed continued bullish comments from BlackRock CEO Larry Fink, reinforcing confidence in the asset.
Market research firm 10x Research said Bitcoin ETF inflows have returned and remain one of the most important indicators for price direction. The firm noted that since Bitcoin does not generate yield, capital flows and investor sentiment continue to play a larger role than many traditional valuation metrics.
What are traders watching now?
Bitcoin briefly touched the $65,000 level before easing to around $64,800. During the past 24 hours, the cryptocurrency traded between $64,250 and $65,037 while trading volume increased, pointing to renewed market activity.
According to CoinGlass, Bitcoin futures open interest rose 0.30% over the past four hours to $47.81 billion. Futures positions on CME and Binance also posted modest gains, suggesting traders are adding exposure while remaining cautious as volatility from the Middle East conflict continues to influence global markets.
Enjoyed this? Bookmark DeFi Planet, explore related topics, and follow us on Twitter, LinkedIn, Facebook, Instagram, Threads, and CoinMarketCap Community for seamless access to high-quality industry insights
Take control of your crypto portfolio with DEFI PLANET PRO, DeFi Planet’s suite of analytics tools.
