US President Donald Trump has officially quelled speculation of an open military invasion that had rattled global financial markets. In a statement on Truth Social on Oct. 8, Trump stated that Washington is actively holding productive discussions with Tehran. Furthermore, he assured that US forces will not launch any armed attacks on Iranian territory before the Nov. 3 midterm elections.
The announcement shelving military action immediately reversed momentum across digital assets. The price of Bitcoin (BTC) responded by surging back above $81,000 in relatively short order. Just hours before Trump’s statement, Bitcoin had tumbled below the psychological $81,000 level for the first time since Sept. 21 amid mounting fears of escalating Middle East conflict.
The rapid price swings had already claimed massive liquidation casualties. The highly volatile trading session triggered forced closures of crypto positions exceeding $480 million. Long traders bore the brunt of the damage, racking up cumulative losses of $115 million within just one hour as war sentiment peaked.
Strait of Hormuz Blockade
Despite holding off on direct military strikes, Trump emphasized that economic pressure and interdiction operations against Iran remain in full force. He pointed to a record 22 million barrels of oil moving through the Strait of Hormuz overnight, with not a single drop allowed to enter or leave Iranian waters.
Global panic had briefly sent energy prices soaring before Trump’s statement circulated widely. Brent crude surged 4.6% to touch $94.65 per barrel, while WTI benchmark crude climbed 5.2% to $90.22 per barrel. Both global oil benchmarks cooled off only after the missile threat receded.
On the opposing side, the Iranian government responded to Washington’s diplomatic maneuvers on high alert. Iranian Foreign Minister Abbas Araghchi confirmed that Tehran is currently focused on reviewing the US response to its seven-day proposal. Concluding his remarks, Araghchi issued a stern warning that Iran remains fully prepared to defend itself should enemy forces ultimately choose military strikes.
Chances of Ceasefire Through November
Easing tensions between the two nations were also clearly reflected on decentralized betting platforms. Compiled data from Polymarket and details from PrimeXBT reported a 60% probability that the US-Iran ceasefire will hold at least through Nov. 15.
For the crypto investor community, that 60% probability provides much-needed short-term breathing room. As long as open warfare is avoided at least until the election concludes, institutional inflows can return to the market without remaining held hostage by daily geopolitical developments.
Reported by crypto.news.
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Previously: Iran Strike Concerns Push Oil to $102 - Bitcoin Dumps Below $83,000
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
