Bitcoin’s price bounced back above the psychological $64,000 level shortly after US President Donald Trump posted a key statement on Truth Social: Iran requested to resume talks, and Washington agreed. The crypto market, which has recently been moving in sync with geopolitical developments, immediately reacted positively.
“The Islamic Republic of Iran requested that we resume ‘talks.’ We agreed to do so, but the United States has stated to them, in no uncertain terms, that the Ceasefire is OVER!” Trump wrote. The seemingly contradictory message - pursuing diplomacy while declaring the ceasefire over - was enough to calm some market anxieties.
Crypto Increasingly Driven by War News
The rebound comes after several turbulent days. Earlier this week, Bitcoin briefly dropped below $62,000 shortly after both nations traded strikes and Trump declared the ceasefire over. Now, signals that diplomatic channels remain open have improved market sentiment - lifting not just Bitcoin, but several other major crypto assets into the green.
Even so, market optimism remains fragile. According to Polymarket data, the odds of the US and Iran actually reaching a nuclear deal before December 31 stand at only around 38%. The nuclear program issue remains the main barrier dividing the two sides.
Lingering Threats Behind the Rally
Here is where the ‘time bomb’ lies: Iran announced plans to impose tolls on vessels passing through the Strait of Hormuz, a maritime route carrying a significant share of the world’s oil supply. Earlier in the week, oil prices surged after Iran attacked three tankers in the strait. Rising energy prices could fuel inflation - and stubborn inflation typically dampens expectations for monetary easing, a dynamic that could weigh on risk assets like Bitcoin.
For now, Bitcoin’s bounce back above $64,000 shows investors welcoming the reopening of diplomatic channels. But as long as the Strait of Hormuz remains a flashpoint and nuclear negotiations yield no breakthrough, any price increase should be viewed as a temporary sigh of relief - not a sign that the storm has passed.
Reported via crypto.news.
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.
