Bitcoin surged past $78,000 after Iran declared the Strait of Hormuz fully open, triggering a broad relief rally across risk assets.
Bitcoin spiked to a two-month high above $78,000 on Friday after Iranian Foreign Minister Seyed Abbas Araghchi declared the Strait of Hormuz fully open to commercial vessels, easing weeks of supply-shock fears that had weighed on global markets.
Iran's Foreign Minister Seyed Abbas Araghchi announced on April 17 that passage through the Strait of Hormuz is "declared completely open" for all commercial vessels during the remaining ceasefire period. Iran's Ports and Maritime Organisation established a coordinated transit route for ships. The strait had been fully closed since early March 2026 amid escalating US-Iran tensions, marking one of the most significant oil supply disruptions since the 1973 embargo.
Bitcoin responded immediately, jumping from the $74,600-$75,700 range to above $78,000, a gain of roughly 3-5% within hours. Crude oil prices dropped sharply, with Brent falling from recent highs above $100 toward $96 per barrel. The total crypto market capitalization climbed from $2.63 trillion to $2.70 trillion, adding roughly $70 billion in value.
The rally highlights Bitcoin's growing sensitivity to macroeconomic and geopolitical catalysts. With the Strait of Hormuz closure fueling energy-price inflation fears for weeks, its reopening immediately reduced risk premiums across global markets. Hundreds of millions of dollars in short positions were liquidated as leveraged bearish bets got caught on the wrong side of the move.
The reopening also followed a newly announced 10-day ceasefire in Lebanon, brokered after Trump spoke with Israeli Prime Minister Benjamin Netanyahu and Lebanese President Joseph Aoun. Falling oil prices ease inflationary pressure, which could improve liquidity expectations and benefit risk assets like crypto.
The sustainability of this rally remains uncertain. Analysts note the move was driven by geopolitical de-risking and short liquidations rather than fresh spot demand, making it potentially fragile. The ceasefire-linked nature of the strait's reopening means any escalation could reverse gains quickly. Bitcoin faces resistance near $78,500, and traders are watching whether the move holds through the weekend.
This is a developing geopolitical story. The Strait of Hormuz reopening removed a major overhang from global markets, but the conditional nature of the ceasefire means the situation could shift rapidly. Traders should watch for follow-through buying next week to gauge whether this relief rally has staying power.
Wall Street giant Citigroup projects Bitcoin could reach $143,000 within 12 months, citing ETF demand and regulatory tailwinds as key catalysts.
Michael Saylor's Strategy reported a $14.46 billion unrealized loss on its bitcoin holdings in Q1 2026, then purchased another $330 million in BTC days later.
The largest US bank is assessing spot and derivatives trading services as regulatory clarity enables traditional finance to deepen crypto involvement.
Disclaimer: News content is for informational purposes only and should not be considered financial advice. Market conditions can change rapidly. Always conduct your own research.
