Following the peace agreement between the U.S. and Iran, concerns over energy supply, inflation, and escalating geopolitical tensions have eased. On-chain analytics firm Santiment believes this shift has boosted risk appetite, prompting capital to flow back into crypto assets, with Bitcoin showing a significant rebound from its early June low.
Bitcoin has rebounded more than 11% from its low.
On Monday, Bitcoin rose above $66,600, increasing approximately 3.5% from recent trading days and rebounding more than 11% from its early June low of around $59,375. Ethereum climbed to approximately $1,846, while XRP and Solana rose 8.7% and 7.4%, respectively. The total cryptocurrency market capitalization remained above $2.36 trillion.
Santiment’s post on June 15 stated that traders have been consistently affected by energy market volatility and global instability over the past few months. With the U.S.-Iran agreement taking effect, the market is now shifting its focus toward the restoration of trade routes, easing economic pressures, and a more stable market environment.
On-chain data suggests buying the dip
Glassnode data shows that after Bitcoin retreated to the $60,000 range, signs of market accumulation have strengthened. The firm noted that various wallet groups absorbed selling pressure during the decline rather than continuing to reduce their holdings, indicating that some investors chose to buy during the correction phase.
This data also shows that buying pressure did not come from a single group alone. Wallet holders of various sizes increased their accumulation scores after Bitcoin’s decline, indicating a recovery in on-chain demand.
ETFs are still experiencing outflows.
However, improved market sentiment has not fully eliminated caution. Data shows that since May, U.S. spot Bitcoin ETFs have experienced cumulative outflows of over $4.8 billion, indicating that some institutional funds have not yet fully returned.
Santiment believes that financial markets often react ahead of actual economic improvements. The firm states that if inflationary pressures continue to ease and institutional investors' risk appetite further recovers, this rally may be more than just a short-term rebound.
Meanwhile, oil prices have declined. WTI crude closed the day at approximately $81 per barrel, down about 4.4% on the day. Santiment views the drop in oil prices, the rebound in risk assets, and the resumption of on-chain buying as one of the factors supporting the current market’s continued strength.