Bitcoin's price has surged to $78,000 following the reopening of the Strait of Hormuz, while Ethereum and other cryptocurrencies also gained.
Bitcoin's price has surged to $78,000, marking its highest point since early February, following an announcement from Iranian Foreign Minister Abbas Araghchi regarding the reopening of the Strait of Hormuz.
"The passage for all commercial vessels through the Strait of Hormuz is declared completely open for the remaining period of ceasefire," Araghchi stated on social media.
As of now, Bitcoin is trading at approximately $77,900, reflecting a 5% increase in the last 24 hours. Glassnode analysts suggest that breaking the $78,000 threshold is essential for Bitcoin to maintain its bullish momentum.
The positive news did not just boost Bitcoin; it also led to gains across the cryptocurrency market. Ethereum rose by 6% to $2,400, XRP increased by 6.3%, and Solana saw a 6.5% uptick.
In the wake of these developments, liquidation volumes soared, nearing $200 million within an hour, predominantly from short positions. The total daily liquidation reached $728 million.
The reopening of the Strait of Hormuz is set to last through the ceasefire between Israel and Lebanon, which was established on April 16. U.S. President Donald Trump confirmed the reopening but emphasized that the U.S. naval blockade on Iranian ports would remain until a deal is finalized.
Market Reactions
The announcement had mixed effects on oil prices, with Brent crude dropping 10% to $89 and WTI falling nearly 11% to $84, contrasting sharply with the earlier spike in fuel prices above $100 due to the conflict.
U.S. stock markets responded positively, with the S&P 500 hitting historic highs above 7,000 points, and the Nasdaq reaching an all-time peak. Analysts noted a shift in retail investor focus towards technology stocks, particularly in AI and innovation.
“After the ceasefire announcement, attention quickly returned to technology themes, driving stocks up,” said Dave Mazza of Roundhill Investments.
However, experts warn that the market remains delicate. Oil prices are still below pre-war levels, and uncertainty looms over the stability of the Persian Gulf's energy infrastructure.
Cryptocurrency Implications
Michaël van de Poppe, founder of MN Trading, predicts that Bitcoin's price will likely rise alongside the stock market, especially as the Nasdaq has experienced a 12-day consecutive growth streak.
“If the Nasdaq continues to rise, I wouldn’t be surprised if Bitcoin aims for historical highs by Q4 2026,” van de Poppe suggested.
Despite cautious optimism, some analysts express concern over the current market's volatility, noting that aggressive buying in the derivatives market exceeded $2.1 billion shortly after the announcement, with over $1.9 billion on Binance alone. Market positioning remains uncertain, with traders showing mixed sentiments about future movements.
On April 17, analysts cautioned about the potential for a short squeeze in the cryptocurrency market, indicating that while the rally is gaining momentum, confidence in its sustainability is lacking.
