A crypto market rally sparked on Sunday, with Bitcoin (CRYPTO: BTC) rising to $77,000, a day after it moved to $74,000. Some of the top gainers were coins like Venice Token, Zcash (CRYPTO: ZEC), Morpho, and Hyperliquid, which jumped by over 10%. 

Crypto Market Rally Triggered By Potential US-Iran Deal

The market capitalization of all coins jumped by over 2% to $2.56 trillion. This rally was triggered in part by President Donald Trump‘s touting a potential deal between the US and Iran. 

In a statement, he said that the two countries were about to reach an agreement that would reopen the Strait of Hormuz. As a result, crude oil prices dipped sharply, with Brent and the West Texas Intermediate falling below $100 on Hyperliquid. Perpetual futures tied to the S&P 500 Index also jumped to a record high.

A US-Iran deal would be highly bullish for the crypto market because of its impact on inflation and the Federal Reserve. It would lower inflation, making it easier for the Fed to cut interest rates in the coming months. 

That would be significant, as the Fed has signaled its willingness to raise interest rates should inflation remain elevated. In a Friday statement, Christopher Waller, a longstanding advocate of rate cuts, said he would support hikes if inflation stayed high.

Bitcoin and other altcoins normally do well in a period when the Fed is either cutting interest rates or when it has signaled that it will slash them over time. 

Cryptocurrencies Face Some Major Risks

Still, the ongoing crypto market rally faces some major risks ahead. For example, there are technical risks, especially now that Bitcoin has formed a rising wedge pattern on the daily chart. This pattern points to more downside over time.

Most importantly, it remains unclear whether a US-Iran deal will materialize. Trump is known to change his mind frequently, so any agreement should only be considered confirmed once he makes it public himself.

Trump may be pushed to striking Iran as some of his top allies in the Senate have blasted the 60-day ceasefire. 

I am deeply concerned about what we are hearing about an Iran "deal," being pushed by some voices in the administration.

President Trump's decision to strike Iran was the most consequential decision of his second term. He was right to do so, and we achieved extraordinary…

— Ted Cruz (@tedcruz) May 24, 2026

They argue that the deal would hand Iran billions of dollars, which it will use to fund its proxies and its missile program. Also, they note that Iran will continue making money through tolls at the Strait of Hormuz.

A collapse of the Iran-US deal and a return to war would lead to a steeper crypto crash. 

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