Bitcoin Surges Past $71,000 as Trump Pauses Iran Strikes
Bitcoin’s price jumped roughly 5% to surpass $71,000 on Monday after U.S. President Donald Trump announced a pause in planned military strikes against Iran. The move followed what Trump described as “very good” and “productive” conversations with Tehran, triggering a broad relief rally across risk assets.
Trump announced the delay via social media, stating that military action would be postponed for five days, citing ongoing discussions and the possibility of de-escalation. “Very good talks” had taken place over the past 48 hours, he said, raising hopes for an end to hostilities that have destabilized the region for weeks.
Iran Denies Direct Talks
However, Iranian officials have denied that any direct dialogue occurred, describing Trump’s statement as a tactic aimed at lowering energy prices and potentially buying time for military planning.
Market Reaction: Oil and Bitcoin
The announcement marked a sharp reversal from escalating rhetoric over the weekend, when Washington had threatened strikes on Iranian energy infrastructure if shipping lanes through the Strait of Hormuz were not fully reopened. That threat had pushed global markets into a defensive posture, with oil prices spiking and equities sliding.
Brent crude oil, which had risen approximately 44% since the beginning of March, slumped around 9% to $101 per barrel following Trump’s statement.
Bitcoin, which had traded around $70,000 for most of the last month, rebounded from weekend lows near $67,000. The cryptocurrency reached an intraday high of $71,806, according to Bitcoin Magazine. Approximately $270 million in short positions were liquidated amid the market relief, amplifying the price move. Invezz reported.
Bitcoin as a Hedge?
Some analysts suggest the conflict could position Bitcoin as a key hedge against the dollar. David Brickell, head of international distribution at FRNT, stated that Bitcoin’s “non-sovereign, immutable, borderless characteristics” make it “the ultimate hedge against the failure of existing economic and political structures.”
Downside Risks Remain
However, other experts caution that Bitcoin could also suffer if the conflict triggers a global recession. A prolonged conflict could disrupt global trade routes and increase uncertainty across financial markets, putting pressure on equities and potentially dragging down Bitcoin, which remains correlated with risk assets. Georgii Verbitskii, founder of TYMIO, noted that Bitcoin typically follows the performance of US stock indices. CoinDesk