The total cryptocurrency market capitalization climbed 2.5% to $2.44 trillion as of Monday morning (UTC), after U.S. President Donald Trump issued contradictory signals regarding the ongoing conflict with Iran over the Strait of Hormuz.
"Open the fuckin’ Strait, you crazy bastards, or you’ll be living in Hell - JUST WATCH!" Trump said in a post on his Truth Social platform, setting a Tuesday deadline. However, in a Fox News interview, he noted Iran is "negotiating now" and that there is a "good chance" of a deal within 24 hours.
The market rebound saw Bitcoin tap $69,500 on Coinbase before settling near $69,183, a 3.29% gain in 24 hours. The sudden move liquidated approximately $255 million in leveraged positions over 24 hours, with 73 percent of those being short bets expecting further price declines, according to data from Coinglass. The rally also lifted Ethereum, which rose 3.89% to $2,131.
The price action breaks a period of bearish sentiment, but traders are now watching if Bitcoin can push past technical resistance near $72,500. A potential 45-day ceasefire, which Axios reported is being discussed by U.S. and Iranian mediators, could reduce geopolitical risk and ease oil prices holding near $112 a barrel. An escalation, however, could send markets seeking safety and push Bitcoin back toward its support range around $60,000.
The crypto market's jump reflects broader financial market sensitivity to the month-long conflict, which has disrupted global trade and added to inflation pressures. The closure of the Strait of Hormuz, a critical channel for global oil trade, has pushed crude prices higher, with Americans spending an estimated additional $8 billion at the pump since the war began, according to market analysis.
Prior to the rally, social media sentiment around Bitcoin had fallen to a five-week low, with analytics firm Santiment noting a high level of "fear, uncertainty, and doubt (FUD)." This bearish positioning likely contributed to the scale of short liquidations when the market turned. The move provides a sharp contrast to weeks of range-bound trading between $65,000 and $70,000, where institutional selling of covered call options had suppressed volatility.
Despite the aggressive rhetoric, diplomatic channels appear active. Besides the ceasefire talks, Trump has also extended previous deadlines, suggesting a degree of flexibility. Iran, for its part, has responded with defiance, with officials stating they "lost the keys" to the strait and would require compensation for war damages before reopening the waterway.
This article is for informational purposes only and does not constitute investment advice.
