Donald Trump said the Strait of Hormuz will reopen by Friday, a declaration that pushed Bitcoin past $65,000 and sparked a broader crypto rally. The former president's statement, made without citing a specific source, comes amid weeks of heightened tensions in the key oil chokepoint. If the strait actually clears, global energy markets could stabilize quickly — and that has traders recalibrating their inflation and rate expectations.
The claim
Trump told reporters Tuesday that the Strait of Hormuz would be fully operational again by the end of the week. He did not elaborate on how that would happen or whether any negotiations were underway. The strait has been effectively blocked since early June after a series of naval incidents involving Iran and the U.S. Fifth Fleet. Oil prices had spiked roughly 12% over the past two weeks on supply fears.
Bitcoin's reaction
Bitcoin jumped from around $62,800 to above $65,000 within hours of Trump's remarks. The move was accompanied by a surge in open interest on BTC futures, suggesting new money entering the market rather than just short covering. Altcoins followed, with Ethereum briefly touching $3,800. The rally extended into Asian trading hours Wednesday.
A reopened Strait of Hormuz would mean lower oil prices, which typically feeds into lower headline inflation. That in turn gives central banks — especially the Federal Reserve — more room to pause or even reverse rate hikes. Looser monetary policy has historically been a tailwind for risk assets, including cryptocurrencies. The timing isn't bad: the Fed's next rate decision is due next week, and markets had been pricing in another 25-basis-point hike.
Even if the strait reopens on schedule, the underlying geopolitical tensions haven't disappeared. Iran and the U.S. remain at odds over nuclear talks and regional influence. A temporary reopening could just delay the next confrontation. For crypto traders, the immediate question is whether Friday's deadline holds. If it slips, expect the oil spike to resume — and Bitcoin to give back those gains just as fast.
