Bitcoin and other major cryptocurrencies experienced a sharp price increase following a social media post by former U.S. President Donald Trump regarding negotiations with Iran. Trump stated on Truth Social that the United States is "in serious discussions with a new, and more reasonable, regime" in Tehran, marking the first public acknowledgment of a potential regime change since the conflict began five weeks ago.
However, the post contained a stark dual message. While signaling de-escalation through talks, Trump also issued an explicit threat, demanding the Strait of Hormuz be "immediately open for business" and vowing to "blow up and completely obliterate" Iran's electric plants, oil wells, and Kharg Island if a deal is not reached. He added desalination plants to the list of potential targets, all of which the U.S. had previously avoided during the conflict.
The market reacted positively to the potential for a ceasefire, interpreting the diplomatic opening as a reduction in geopolitical risk. Bitcoin jumped 1.3% to $67,580, while Ethereum outperformed with a 3.1% gain to $2,064. Solana rose 1.9% to $84.09, and XRP added 1.0% to $1.35. Tron was noted as a consistent outperformer, up 1.3% on the day and 5.3% for the week.
The price surge triggered significant liquidations in the derivatives market. Data from CoinGlass shows $9.32 million in short liquidations occurred in just one hour following the news, compared to only $207,000 in long liquidations. Over a 24-hour window, total liquidations reached $340 million, with the largest single order being a $9.8 million BTCUSD liquidation on the Bybit exchange.
The announcement, described by analysts as a "historic breakthrough" and a major policy shift, has broader implications. Experts note that successful negotiations could lead to the lifting of sanctions on Iran, potentially increasing global oil supply and reducing energy prices—a macro factor often correlated with risk asset performance. The situation remains fluid, with the market grappling to price the contradictory signals of potential peace and explicit threats of escalated conflict.
