Risk assets rally on hopes of U.S.-Iran de-escalation; Bitcoin tops $80,000

BlockBeats reports that on Aug. 25, markets priced in a higher likelihood of de-escalation in the U.S.-Iran standoff, sparking a broad rebound across global risk assets. The New York Times said the U.S. is preparing to return diplomatic staff previously evacuated from its Middle East embassies, a move investors read as a sign Washington is not expecting an imminent full-scale conflict with Iran. Oil prices retreated sharply. Brent briefly slipped below $90 a barrel, down more than 3% on the day, while WTI fell about 3%. U.S. equity futures moved higher, with S&P 500 futures up 0.4% and Nasdaq 100 futures up 0.9%. Semiconductors led the advance: NVIDIA gained about 0.9% in premarket trading, potentially snapping a seven-day losing streak. Micron, Seagate and other AI-linked names also strengthened. In rates, the U.S. 10-year Treasury yield fell roughly 3 basis points to 4.66%, with lower yields supporting risk appetite. Crypto also caught a bid. Bitcoin briefly climbed above $80,000 for the first time since mid-May before paring gains. Market participants cited renewed interest in dollar-weakness trades and recent bond-market intervention by U.S. Treasury Secretary Bentsen, which they say has pushed some capital toward non-dollar alternatives and supported BTC. In a Wall Street Journal piece, billionaire investor Stanley Druckenmiller criticized Bessent's bond-market intervention, writing, "The government's attempt to detach prices from fundamentals always ends in failure." Investors are now watching NVIDIA's earnings, upcoming U.S. PCE inflation data, and Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole symposium this Friday, all of which could influence market direction and September rate expectations.