Bitcoin climbed to a one-month peak near $65,700 on Monday before retreating to around $65,000 as equity markets closed, reflecting shifting sentiment amid geopolitical developments and rising bond yields.

The cryptocurrency advanced following a report that Iran was considering renewed ceasefire discussions, which briefly pushed West Texas Intermediate crude down about $3 to below $80 a barrel and lifted Nasdaq 100 futures by 1 percent. The report proved short-lived, however, with no formal acceptance from involved parties. Oil prices recovered, with WTI climbing back toward one-month highs around $82.50 a barrel and Brent crude reaching $85.

The 10-year U.S. Treasury yield rose five basis points to 4.59 percent. Market participants raised the probability of a Federal Reserve rate increase in July to 16 percent and in September to 63 percent. Higher yields increased the opportunity cost of holding non-yielding assets such as Bitcoin.

Despite the pullback, structural support remained evident. Bitcoin exchange-traded funds recorded inflows for four consecutive days, including $181 million on July 14 led by BlackRock’s IBIT. On-chain indicators showed exchange supply at its lowest level since 2017, with long-term holders controlling a record share of circulating supply.

Demand for Bitcoin long positions among large traders reached a 10-month high. The price action tested resistance in the $65,200 to $65,800 range before retreating, while maintaining positions above key moving averages.

Geopolitical tensions persisted, with the United States reinstating a blockade on Iranian ports and threats of further action if negotiations stalled. The upcoming Federal Reserve meeting on July 28-29 is expected to influence near-term market direction, as investors assess the central bank’s response to elevated energy prices and inflation risks.