Bitcoin Nears $64,300 as Traders Eye Three-Week Highs

Bitcoin pushed above $64,500 on Friday, coming within striking distance of fresh three week highs as hopes grew that a US-Iran peace agreement could hold.

The rally came even as oil prices stayed lower after pulling back from $76 per barrel, and the US dollar weakened for a third consecutive day, with the dollar index nearing its lowest level since mid-June.

Analysts point to $65,000 as the next major hurdle for bitcoin bulls to clear. Markets have been improving steadily and suggested that a break above this level could reverse downtrends across several altcoins.

Warnings Persist Around Broader Market Risks

Analysts cautioned that underlying economic risks remain elevated despite the price rebound. They pointed to strained oil supply conditions following recent tanker attacks and stalled shipping talks, along with the US Strategic Petroleum Reserve sitting at its lowest level since 1983. Analysts also noted signs of stress spreading into crypto markets, citing recent bitcoin sales by a major business intelligence firm and rising redemption requests in private credit funds.

Inflation Expectations Ease

On a more positive note, a sharp drop in the probability of US inflation exceeding 4.5% this year, based on market data. Expectations have cooled significantly compared to just weeks earlier, adding to a more optimistic tone across financial markets.