Crypto Market Rebounds as Trump Mulls Suspending Jones Act to Ease Oil Price Pressures
Highlights
- Bitcoin is back above $70,000 after briefly dropping falling below this psychological level.
- This follows reports that the Trump administration is considering halting the Jones Act.
- Crypto prices also climbed as Iran's Deputy Foreign Minister said they allowed some ships to pass the Strait of Hormuz.
The crypto market has rebounded again today, with Bitcoin back above $70,000 after a brief drop below this level. This rebound follows confirmation from the White House Press Secretary Karoline Leavitt that the Trump administration is considering suspending the Jones Act.
Crypto Market Bounces as Trump Considers Suspending Jones Act
TradingView data shows that the total crypto market cap is up today, currently at $2.37 trillion. This follows Bitcoin’s rebound above $70,000, with the leading crypto currently trading at around $70,400.
Bitcoin had notably dropped below this psychological level after Iran declared the Strait of Hormuz would remain closed. Iran’s new Supreme Leader, Mojtaba Khamenei, made this statement, sending oil prices higher and putting downward pressure on the crypto market.
These crypto prices are back up after Leavitt told FOX News that the White House is considering waiving the Jones Act for a limited period of time. This is to ensure that vital energy products and agricultural necessities are flowing freely to U.S. ports. However, she added that the action has not been finalized.
Such a move could help stabilize volatile oil prices and sustain the crypto market rebound. IEA member states had also agreed to release a record 400 million barrels of oil to mitigate the supply shock and curb rising prices.
It is worth noting that Trump had earlier today signaled that the Iran war is likely to continue for as long as possible despite the rising oil prices. Crypto traders are already pricing in the possibility of a prolonged conflict with the odds of the U.S.-Iran war lasting till May rising to 70%.
Some Ships Still Passing the Strait Of Hormuz
Crypto prices have also rebounded amid Iranian Deputy Foreign Minister Majid Takht-Ravanchi’s statement that some ships are still passing the Strait of Hormuz. “Some countries have already talked to us about passing the strait, and we have cooperated with them,” Majid Takht-Ravanchi told AFP.
The Iranian Deputy FM also indicated that Tehran was only allowing ships from countries that haven’t allied with the U.S. and Israel in the war to pass. “As far as Iran is concerned, we feel that those countries that joined the aggression should not benefit from safe passage through the Strait of Hormuz,” he said.
This aligns with Khamenei’s statement about using the closure of the Strait of Hormuz to pressure the “enemy.”The crypto market is still at risk of a decline as Trump has threatened greater military action if Iran fails to reopen this major oil chokepoint.
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