Bitcoin price soars towards $80,000 following declaration of opening of Strait of Hormuz route

Bitcoin rallied towards $80,000 after Iran announced that the Strait of Hormuz will be fully open to commercial traffic for the remainder of the ceasefire period, easing pressure on one of the world’s most important energy chokepoints and sparking broader risk-on activity across markets.

The largest cryptocurrency rose 5% on the news, rising to $77,700, according to . crypto slate data. The move extended a week-long rally that saw Bitcoin rise nearly 7% from below $70,000 to its strongest level since the crash in early February.

This rally triggered a wave of rapid liquidations across leveraged crypto positions. According to CoinGlass data, about $243 million was liquidated in the past hour, with most of the losses concentrated among traders heading for further downside.

For context, Bitcoin short traders lost over $100 million during the reporting period.

Meanwhile, the total liquidation amount exceeded $720 million in a long period of 24 hours. Notably, this is one of the largest market disappearances since mid-March.

Iran opens Strait of Hormuz

The rally comes as traders are linking Bitcoin’s rally to sudden changes in the macro environment.

Iran on Friday declared the Strait of Hormuz fully open to commercial traffic during the ceasefire period.

In an April 17 post about X, Foreign Minister Seyyed Abbas Araghchi said:

“Following the ceasefire in Lebanon, it is declared that all commercial shipping routes through the Strait of Hormuz will be fully open for the remainder of the ceasefire.”

He added that ships must follow coordinated routes set by Iranian maritime authorities.

President Donald Trump acknowledged the latest information and thanked Iran for reopening the waterway.

Following the news, oil prices fell by more than 11%, according to data from oilprices.com. This reversed some of the war premium that had accumulated while the Strait remained largely closed.

The Strait of Hormuz route carries around 20% of the world’s oil and liquefied natural gas flows and is one of the hottest routes in global trade. Its narrow geography has long allowed it to exert influence on Iran during the conflict, restricting maritime traffic and increasing pressure on its energy markets.

During the recent standoff, only a small number of commercial vessels passed through the waterway each day.

Meanwhile, the latest developments bring to an end a period of instability during the U.S.-Iranian war, during which the strait remained largely closed while both sides argued over the terms of a peace deal.

What’s next for Bitcoin price?

For Bitcoin, the reopening of the Channel removes one of the most obvious short-term threats hanging over the risky asset.

This is because falling oil prices tend to ease inflationary pressures and alleviate concerns that energy-driven volatility will spike again, a backdrop that could support speculative assets that have been under pressure due to the escalation in regional conditions.

Already, a change in tone is evident in derivatives markets, with traders starting to take positions towards higher price targets.

At Deribit, owned by Coinbase, $80,000 call options have emerged as one of the most popular trades, with a notional value of more than $1.5 billion. The next largest cluster of bullish positions reached $90,000, and the value associated with that strike was approximately $914 million.

Forecasts for market activity have also become more optimistic. According to Polymarket data, the probability that Bitcoin will exceed $80,000 by the end of the year is over 88%. This suggests that traders are increasingly treating that level as a short-term goal rather than a distant upside scenario.