Bitcoin prices shot up Thursday after former President Donald Trump said the Strait of Hormuz would reopen immediately under a new Iran deal. The rally came as markets priced in a lower risk of regional conflict — a sharp reversal from weeks of geopolitical jitters.
What Trump said
Speaking during a campaign-style event in New Hampshire, Trump claimed the Iran deal he'd negotiate would guarantee safe passage through the Strait of Hormuz from day one. He didn't offer specifics on the agreement's terms, but the statement alone was enough to trigger a risk-on mood across crypto markets.
The Strait of Hormuz is a critical chokepoint for global oil shipments. Any disruption there tends to rattle traditional markets, and crypto has increasingly been caught in those crosswinds.
Why Bitcoin jumped
Traders interpreted the news as a signal that tensions could ease quickly — something the market hadn't fully priced in. BTC climbed roughly 4% within an hour of Trump's remarks, according to exchange data. The move pushed prices above a key psychological level that had been tested earlier this week.
The rally was broad-based. Ether and several large-cap altcoins also logged gains, though Bitcoin led the charge. Volume on major spot exchanges picked up noticeably, suggesting real buying interest rather than a short squeeze.
For now, the market is waiting to see if Trump's statement translates into actual diplomatic movement. No formal negotiations have been announced, and Iran's government hasn't responded. But the fact that a single political remark could move Bitcoin so sharply shows how sensitive crypto has become to macro headlines — especially ones tied to energy markets.
Traders will be watching for any follow-up from the Trump camp or from Tehran this weekend. If the rhetoric stays positive, Bitcoin could hold its gains. If not, the rally might fizzle as quickly as it started.
