Bitcoin’s price saw a sharp $1,500 rebound on Sunday after President Donald Trump announced he was calling off planned military strikes against Iran, citing progress toward a diplomatic agreement over the Strait of Hormuz. The cryptocurrency, which had fallen to an 18-day low of $62,200 on Saturday evening amid escalating tensions, recovered to trade around $63,500 as de-escalation hopes returned to the market.
In a post on Truth Social, Trump stated that the U.S. military remains “locked and loaded” but that he had agreed to pause strikes at the request of Iran and other regional nations. He emphasized that those countries are working on a deal for the “immediate, complete and total opening of the Hormuz Strait, and an end to Iran’s nuclear threat.” The White House later confirmed that Tehran had signaled willingness to negotiate a framework ensuring safe passage for commercial vessels in exchange for sanctions relief and a halt to U.S. military action.
The Strait of Hormuz is a critical chokepoint through which roughly 20% of the world’s oil passes, making any disruption a potential trigger for global economic turmoil. The mere threat of strikes had already rattled oil markets, and the latest pivot toward diplomacy provided temporary relief to risk assets, including Bitcoin. Analysts cautioned that the rally could be fragile, with the White House setting a short window for talks and Trump warning that “time is running out.”
Other headwinds for Bitcoin, such as ongoing ETF outflows and bearish technical indicators, remain in play, but for now the geopolitical shift has clearly dominated short-term price action. The real test will come when traditional markets open on Monday, as has been the pattern in recent weeks of war-driven volatility.
