Bitcoin was just under $66,000 during Monday morning trading after US President Trump claimed the US had brokered a peace deal with Iran that would reopen the Strait of Hormuz.
“The deal with the Islamic Republic of Iran is now complete. Congratulations to all!” Trump published on its Truth Social platform late Sunday.
“I hereby fully authorize the free opening of the Strait of Hormuz and, concurrently, I authorize the immediate lifting of the United States naval blockade,” Trump said. “Ships of the world, start your engines. Let the oil flow!”
“With the opening of the straits after the signing of the agreement on Friday (…) oil will once again flow at both ends for the region and the world!” he he said in a separate post.
Source: Donald Trump
Trump has claimed dozens of times in the past two months that a deal to end the war is close, and crypto markets have been trading on news of the Iran war since it began in February with US-Israeli strikes.
Markets reacted positively to Trump’s latest assertion, with Bitcoin (BTC) hitting $65,881 on Coinbase on Monday morning, according to TradingView. That’s the highest it’s traded in the past 12 days, having not been above $66,000 since June 3.
Andri Fauzan Adziima, head of research at research institute Bitrue, told Cointelegraph that the potential deal “removes a large geopolitical risk premium, triggering a clear risk move as uncertainty fades.”
“Bitcoin broke above $65,000, boosted by traders returning to crypto amid lower oil pressure and a broader narrative of stability under the pro-crypto administration,” he added, but warned there could be “last-minute signing issues” with the deal.
Details of the U.S.-Iran deal were not immediately available, and it will not be implemented until Iran signs it, which is expected to be brokered by Pakistan on Friday, Associated Press reported.
Related: Trump says the Iran peace deal will be signed on Sunday, contradicting Tehran
Iran’s deputy foreign minister, Kazem Gharibabadi, confirmed the deal on state television, while the secretariat of Iran’s Supreme National Security Council said the war on all fronts “will end immediately and permanently starting tonight” and that the US blockade “will be ended immediately and completely”.
Bitcoin has been rising gradually since briefly falling below $60,000 on June 6; however, it is still down 48% from its peak of over $126,000 in October.
The broader crypto market also gained 2% in total cap on the day, with several altcoins including Hyperliquid (HYPE), Zcash (ZEC) and Near Protocol (NEAR) outperforming, some with double-digit percentage gains.
There was also a move in crude oil prices, with WTI Crude falling 5% to its lowest level since early March at just over $80 a barrel, while Brent Crude mirrored the move, falling 4.6% to $83.30.
More volatility is ahead
Wednesday could add more volatility to crypto markets as the Federal Reserve is set to make a decision on interest rates, the first under new chairman Kevin Warsh.
The new central bank president seems more willing to cut, but rising inflation, which has once again exceeded 4%, strengthens the case for raising interest rates.
CME Fed Watch tool now predicts 96.6% chance that rates will remain unchanged at 3.5% to 3.75%
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