Global financial markets, including digital assets, began the middle of June on a more stable footing as geopolitical risks subsided. The recovery followed reports that U.S. President Donald Trump has signed a preliminary draft of a peace agreement with Iran. While the deal has yet to be finalized, the diplomatic progress has significantly eased the geopolitical risk premium that had weighed on markets for months.
The market response to the de-escalation was immediate, sparking a measured relief rally. Bitcoin and the majority of large-cap digital assets posted positive movements over the past twenty-four hours. However, ongoing macroeconomic pressures from persistent structural inflation continue to cap broader upward momentum.
According to recent trading data, Bitcoin was trading at 65,615.37 USD, marking a daily gain of 1.57% and a weekly appreciation of 3.98%. This movement indicates that after correcting sharply from the 80,000 USD level down to the 65,000 USD range, the market has established a short-term equilibrium as military tensions cool.
Ethereum followed a similar recovery pattern. The second-largest digital asset by market capitalization reached 1,719.90 USD, reflecting a 2.09% daily increase and a 2.05% gain over the week. The stabilization of these two primary assets suggest a reduction in panic selling, although substantial new accumulation has not yet materialized.
In the altcoin sector, price movements reacted directly to the shifting geopolitical sentiment. Solana demonstrated strong performance, gaining 3.35% on the day and leading the weekly gains among the top ten digital assets with a 7.42% increase to stand at 71.24 USD. Minor gains were also recorded by Hyperliquid, which rose 4.99%, and Dogecoin, which ticked up 0.96%.
In contrast, Zcash recorded a sharp negative anomaly. While the privacy-focused token surged in previous weeks as a hedge against escalating conflict, the sudden easing of tensions triggered a rapid rotation of capital. Zcash dropped 11.90% daily and 9.38% weekly to fall to 472.17 USD. This confirms that demand for privacy-centric assets was heavily driven by regional panic, which has now begun to dissipate.
The signing of the initial peace draft by the United States marks a critical turning point for the global economy. Although it will take time to establish a binding final memorandum of understanding, the signal of de-escalation offers hope for a permanent reopening of the Strait of Hormuz. Normalizing this crucial energy transit route should curb further speculation on crude oil prices and give risk assets room to breathe by mitigating the threat of sudden inflationary shocks.
Despite the positive geopolitical development, underlying macroeconomic conditions remain restrictive. Inflation in the United States and Europe continues to show upward pressure, driven by strong U.S. employment data and high logistics costs that accumulated during the conflict.
This environment keeps the pressure on the Federal Reserve under its new Chairman, Kevin Warsh, to maintain elevated interest rates to ensure price stability. Consequently, tighter monetary conditions will likely continue to limit overall liquidity in the digital asset market. Analysts maintain that the drop from 85,000 USD to the current 65,000 USD range represents a healthy fair value adjustment, keeping the conservative target for maximum capital deployment at the 40,000 USD to 45,000 USD range as the cycle bottom expected in the second half of 2026.