Breaking: Bitcoin Jumps Above $66K As Trump Claims Reopening of Strait of Hormuz
Highlights
- Bitcoin climbed to the $66,500 level amid the easing of US-Iran tensions.
- The surge came in response to Trump announcing the reopening of the Strait of Hormuz.
- On the other hand, oil prices plunged as ships moved across Hormuz.
Bitcoin surged past $66,500 on Monday following Donald Trump’s statements on Truth Social. He revealed that maritime traffic through the Strait of Hormuz had resumed more freely. This boosted sentiment across digital assets while oil prices fell drastically.
Bitcoin Soars Beyond $66K Amid Trump’s Strait of Hormuz Reopening Claims
Bitcoin reacted positively as geopolitical risk concerns around energy shipping routes reduced massively today. The BTC price rallied 3.5% to $66,570.40 at press time on Monday.
This comes after Trump wrote in a post on Truth Social that “ships are starting to move, many loaded up with Oil, out of the Strait of Hormuz.” He added, “They are going along the Southern ‘Highway,’ which is totally safe, secure, and pristine.” The message also noted that “There are other areas of travel, also!”
The remarks were taken as a sign of better shipping flow prospects in a key chokepoint for world crude supply that is of particular interest to energy and risk markets. It led to a risk-on sentiment with Bitcoin leading the charge of gains across major cryptocurrencies.
This news comes on the heels of Pakistan PM announcing that the U.S. and Iran have reached a peace deal. The agreement is expected to be signed on Friday, June 19 in Switzerland. During the weekend, Bitcoin price regained hold over the $65,000 mark owing to this bullish macro development.
Overview of Oil Prices
In contrary, crude oil prices declined by 5.13% to $80.53 per barrel. On the macroeconomic front, amid geopolitical tensions that restrict fuel and energy supply, Bitcoin tends to witness a bearish sentiment as oil prices surge.
The market is forced to pull money out of risk assets. Earlier, when oil price soared beyond $100, Bitcoin had crashed below the crucial level of $60,000. However, experts believe that the reopening of the Strait of Hormuz, per Trump, could have a lasting positive impact on Bitcoin and the crypto market
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