Bitcoin Jumps As Trump Mixes Threats And Iran Talks
Oil prices were already pushing higher when Bitcoin caught a sudden jolt. Crude climbed to about $112 a barrel on Monday morning after the Middle East war and the Strait of Hormuz shutdown added new pressure to energy markets, while one market watcher warned that if prices stay near that level for weeks, US inflation […]
Bitcoin surged to a new 11-day high on Monday as global tensions escalated between the US and Iran, with oil prices already pushing higher due to the ongoing conflict in the Middle East. Crude oil reached approximately $112 per barrel on Monday morning, driven by the Strait of Hormuz shutdown and the broader geopolitical instability in the region. Market analysts warned that if oil prices remain near this level for several weeks, US inflation could edge up again, potentially undermining efforts to cool down the economy.
The situation was further complicated by US President Donald Trump, who added to the tension with a new warning for Iran. In a post on Truth Social, Trump stated that Iran would be "living in Hell" if the Strait of Hormuz was not reopened, and he set a fresh deadline, indicating that the country now had until Tuesday or face attacks on its power plants and bridges. Trump also told Fox News that Iran was negotiating and that there was a "good chance" of a deal within 24 hours. Later, Axios reported that the US, Iran, and regional mediators were discussing a 45-day ceasefire that could end the war.
The mixed signals from the geopolitical front prompted a swift reaction in the cryptocurrency market. The total market value of cryptocurrencies rose by about $70 billion, or 2.5%, to $2.38 trillion in early Monday trading. Bitcoin, the leading cryptocurrency, touched $69,870 on Coinbase, according to TradingView data. The sudden surge also impacted traders who had bet against the market. CoinGlass data showed roughly $255 million in liquidations over 24 hours, with 73% coming from short positions, indicating a rapid squeeze rather than a steady build driven by consistent buying.
The broader backdrop of the conflict has been a significant factor in the market's behavior. The ongoing war, which has lasted more than a month, has strained energy supply, contributing to higher oil prices. Reports suggest that Americans have been paying an extra $240 million per day for fuel since the war began on February 28.
As the situation continues to unfold, the risk of inflation remains a significant concern. According to the Kobeissi Letter, cited in the report, inflation tied to the US Consumer Price Index could rise to about 3.7% if current oil levels hold for another seven weeks. The geopolitical tensions and their impact on energy markets will likely continue to shape the trajectory of Bitcoin and other cryptocurrencies in the coming days and weeks.
