Ether is outpacing bitcoin, pointing to a possible early shift toward altcoins, as reduced tensions between the U.S. and Iran weigh on oil prices.

A risk-on mood returned to global markets after both countries refrained from further military action on Sunday, prompting a drop in crude prices.

Bitcoin, the largest cryptocurrency by market capitalization, has moved back above $65,000, gaining around 1.2% over the past 24 hours. Ether rose more than 3% to approach $1,950, while other major tokens such as Solana and XRP recorded gains of roughly 1% to 2%.

WTI crude futures fell करीब 5% on Monday to trade near $85, while Nasdaq and S&P 500 futures edged up about 0.5%. Currency markets also reflected stronger risk appetite, with the Australian dollar and euro advancing against the U.S. dollar.

The U.S. and Iran held off on further strikes for a second straight day, opening the door for potential diplomatic progress. The conflict, which began in late February, had briefly entered a fragile ceasefire earlier in the year before quickly deteriorating.

Reports indicate Iran is willing to continue suspending airstrikes if the U.S. does the same, signaling a cautious step toward another possible peace effort.

“Markets are reacting to broader macro developments,” said Vikram Subburaj, CEO of India-based crypto exchange Giottus.

He noted that Brent crude’s 4.7% decline to $92.19 has helped ease inflation pressures, although the upcoming Federal Reserve meeting on July 28–29 remains a key risk. Markets are currently assigning a 36.3% probability to a 25-basis-point rate hike.

Subburaj added that ether’s stronger performance suggests some capital rotation into alternative cryptocurrencies, though bitcoin’s dominance at 58.6% indicates the shift is not yet widespread.

Meanwhile, some analysts are focusing on bitcoin’s historical four-year cycle, suggesting the market may be nearing a bottom ahead of the next major upswing.

Joao Wedson, founder and CEO of analytics firm Alphractal, noted that previous cycles show roughly 900 days between each Bitcoin halving and the subsequent bear market low. With the current cycle at about day 827, he believes bitcoin may already be forming a base, with a potential final bottom emerging within the next two months.