Bitcoin rose above the $65,000 level on Monday after the US-Iran attack pause over the weekend pushed oil prices sharply lower and eased concerns about near-term inflation, while investors looked ahead to this week’s Federal Reserve policy meeting.

The world’s largest cryptocurrency was last traded up 1.5% at $65,405.4 at 08:29 WIB, recovering from last week’s volatility as investors returned to risk assets.

Bitcoin ended last week nearly unchanged amid choppy trading.

Market sentiment improved after Iran said it would halt retaliatory attacks if Washington refrained from further military action, while the US also ended its bomber campaign, easing concerns about a wider regional conflict.

This de-escalation triggered a sharp drop in oil prices, with Brent crude falling by more than 5%, helping ease fears that higher energy costs could reignite inflation and force central banks to keep tighter monetary policy for longer.

Softer inflation expectations also weighed on the US dollar, making dollar-denominated assets such as cryptocurrencies more attractive to overseas investors.

Investors’ attention is now shifting to the Federal Reserve policy meeting later this week. The US central bank is widely expected to keep interest rates unchanged on Wednesday, although traders will be watching comments from Chairman Kevin Warsh for clues about the policy outlook through the rest of this year.