Bitcoin price formed support above $66,000 as investors hoping for an end to the ongoing US-Iran conflict gained new momentum after President Trump discussed the possibility of a ceasefire, even if the Strait of Hormuz remains closed.
According to a recent report in the Wall Street Journal, US President Donald Trump has privately consulted with his advisers about the next four to six weeks of negotiations to end the ongoing war between the US and Iran in the Middle East.
Oil prices soared above $100, the highest in years, as Iran’s military maintained a blockade of the Strait of Hormuz, a key maritime trade route, after a fifth straight month of war. Subsequently, Israel, as an ally of the United States in the ongoing conflict, attacked South Pars, Iran’s largest natural gas plant, which reportedly supplies nearly 70% of the country with electricity. There are concerns that this infrastructure failure could lead to the collapse of the entire power grid.
In a recent assessment of the current war situation, President Trump and his aides suggested that reopening the Strait of Hormuz could extend the conflict beyond its desired deadline.
Therefore, in a statement to the press, Caroline Levitt confirmed that opening the Strait of Hormuz is not the main goal of the United States, and that the United States and Israel should focus on destroying Iran’s military capabilities and preventing it from developing nuclear weapons.
Levitt added that he believes Trump can successfully end the ongoing hostilities with Iran while simultaneously pressuring Iran to open trade routes. President Trump will use his own failing diplomacy as an excuse to encourage the EU and its allies in the Persian Gulf to help lift the blockade from the region.
Bitcoin prices briefly topped the $68,000 level after news of Trump’s involvement gained attention, but fell to support at $66,000 amid continued volatility.
However, Saudi Arabia and other neighboring countries continue to urge President Trump to escalate the war against Iran after Iran rammed a tanker at the port of Dubai, disrupting shipping lanes. These allies seek a fundamental change in Iran’s leadership or an end to its regional influence.
Despite previous attempts by the United States to broker a peace deal, the Iranian government rejected the offer on the premise that it was simply a cover for foreign intelligence operations. It has also threatened to raise oil prices to $200 as it exercises sea control in the Strait of Hormuz, a key move to punish the United States and its allies at a time of heightened tensions.
Iran also wants the United States to lift all economic sanctions and compensate it for damages suffered during the war. In addition, Iranian leaders are seeking greater control of the Strait of Hormuz to continue their nuclear missile program and deter future U.S. interference.
At last check, Bitcoin (BTC) price was trading at $66,387. The bellwether’s assets have fallen 7% over the past week and are down more than 30% from this year’s high of $97,538 hit around mid-January.
A potential ceasefire between the US and Iran would certainly provide a big boost to risk assets like Bitcoin in the coming weeks, but with oil prices remaining near record highs, the asset could continue to struggle unless the Strait of Hormuz blockade is lifted.
This has led to an investor flight to traditional safe-haven assets such as gold and precious metals, which have shown remarkable resilience amid geopolitical uncertainty.
For now, if Bitcoin manages to recover above $70,000 in the coming sessions, the bulls could push the price higher, potentially reaching $75,000 or $80,000 if market conditions improve.
Additionally, traders are keeping an eye on macro events that could determine the next big move in the market, such as the March nonfarm payrolls release later this week.
