US President Donald Trump has hinted that a peace deal between the US and Iran is close to being finalized.
At the time of writing, Bitcoin is at $77,087, up 0.15% since it opened early Monday in Asian trading.
The statement boosted investor sentiment and helped the crypto market add about $75 billion in market value.
Trump announced via his Truth Social platform that the deal has been ‘largely negotiated’ involving the US, Iran and several other countries such as Saudi Arabia, the United Arab Emirates, Qatar, Pakistan, Turkey, Egypt, Jordan and Bahrain.
However, some final details are still being discussed before it is officially announced.
One of the main focuses of the deal is the reopening of the Strait of Hormuz.
The sea route is crucial to global oil trade, and tensions in the area have previously caused global energy prices to rise.
The situation has also affected high-risk assets such as crypto as investors have become more cautious.
After Trump's announcement, the crypto market showed a positive reaction.
The price of Bitcoin, which had previously fallen to a five-week low of around $74,250, jumped back to almost $77,000 before stabilizing around $76,800.
Despite a short-term recovery, Bitcoin is still in a downtrend after failing to break through the $82,000 resistance level.
The current price is also still far lower than the highs recorded last October.
In addition, US Secretary of State Marco Rubio also stressed that Iran cannot have nuclear weapons and the Strait of Hormuz must be opened without any additional restrictions or charges.
