Crypto markets rallied about 2.5% after US President Donald Trump sent mixed signals over talks with Iran that could reopen the Strait of Hormuz, including reports of a possible ceasefire that might end the war.
In a profanity-filled post on Truth Social Sunday, Trump warned Iran it would be “living in Hell” if the strait is not reopened. He also told Fox News that Iran is “negotiating now” and said there is a “good chance” a deal could be reached within 24 hours.
The total crypto market cap rose roughly $70 billion, hitting an 11-day high of $2.44 trillion in early Monday trading. Bitcoin briefly reached $69,500 on Coinbase, according to TradingView.
The price move triggered about $255 million in liquidations over 24 hours, with roughly 73% of those being short positions, CoinGlass data shows.
Trump’s remarks follow more than a month of conflict that has driven global oil prices higher and raised recession concerns. He initially gave Iran a 10-day window to reopen the Strait of Hormuz; his latest post suggested Iran had until Tuesday to comply or face strikes on power plants and bridges. “There will be nothing like it!!! Open the fuckin’ Strait, you crazy bastards, or you’ll be living in Hell – JUST WATCH!” he wrote.
Despite the aggressive language, Trump also said he was optimistic about negotiations and mentioned a “good chance” of a deal within a day. He added, “If they don’t make a deal and fast, I’m considering blowing everything up and taking over the oil.”
An Axios report indicates the US, Iran and regional mediators are discussing terms for a 45-day ceasefire that could lead to an end of hostilities, adding to the mixed signals.
The conflict and the closure of the Strait of Hormuz pushed crude oil to about $112 per barrel Monday morning. The Kobeissi Letter warned that if prices remain at these levels for another seven weeks, US CPI-related inflation could rise to roughly 3.7%. It also estimated Americans have spent an extra $240 million per day on fuel since the war began on Feb. 28.
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