Bitcoin Rebounds as U.S., Iran Reportedly Explore Phased Plan to Reopen Strait of Hormuz

Bitcoin is back above the psychological $84,000 level after falling to as low as $83,000 in the last 24 hours. This rebound comes amid reports that the U.S. and Iran are exploring a plan to reopen the Strait of Hormuz and end the U.S. blockade.

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Bitcoin Rises Above $84,000 Amid Reported Hormuz Plan

The leading crypto has rebounded from its intraday low of around $83,000, rising above $84,000. At the time of writing, the BTC price is trading at around $84,300, down less than 1% today, according to TradingView data. Other crypto prices have rebounded from their intraday low alongside BTC.

Bitcoin’s rebound comes amid a Reuters report that U.S. and Iranian negotiators are exploring a phased plan to end the war, including reopening the Strait of Hormuz and ending the U.S. blockade. However, the report noted that nothing concrete has come out of these talks, as neither side is willing to give up its leverage first.

The U.S.-Iran war has continued to pressure energy prices, with Brent crude rising above $105 today while diesel prices also rise to new highs. Uncertainty about when the war could end also continues to spark inflation concerns, with inflation trending well above the Fed’s 2% goal, which is bearish for BTC and the broader crypto market.

Notably, the Fed raised interest rates last week for the first time since 2023, a move which failed to deter Bitcoin and the broader crypto market, as crypto prices rose to new local highs. However, a further rally remains under threat, with the odds of an October Fed rate hike climbing as the U.S. and Iran have yet to reach a deal despite reports of progress in negotiations.

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Ceasefire Expected To Continue For Now

Crypto traders are betting that the U.S.-Iran ceasefire will continue for now, possibly extending beyond the end of next month. Data from the top crypto prediction market platform Polymarket shows a 62% chance that the ceasefire continues through October 31.

The odds have climbed over the last few days amid optimistic statements from U.S. officials. U.S. Secretary of State Marco Rubio said yesterday that talks between the two sides were positive, though he added that no breakthrough has occurred yet.