A sharp swing in Bitcoin prices over the weekend followed U.S. President Donald Trump’s rejection of Iran’s peace proposal, a move that ratcheted up tensions in the Middle East and quickly triggered major volatility across cryptocurrency markets.
Trump’s statement triggers price swings
On Sunday, Trump took to the Truth Social platform to firmly reject Iran’s offer of peace negotiations, dismissing it as completely unacceptable. Previously, Iran had demanded that the United States pay war reparations and release frozen financial assets. Trump’s response heightened expectations that the regional conflict could drag on.
In the immediate aftermath, Bitcoin briefly dipped, dropping from $81,430 to $80,520 within 45 minutes. However, the leading cryptocurrency quickly rebounded, surging 2.3 percent in less than three hours to hit $82,347. According to CoinGecko data, the rapid fluctuations triggered approximately $64 million in forced liquidations of short positions in derivatives markets.
The ongoing turmoil in the Middle East has reverberated far beyond the crypto sector, roiling global financial markets as well. The conflict around the Strait of Hormuz has driven up oil prices, which jumped 4.6 percent to $98.7 per barrel following the latest developments. Meanwhile, the S&P 500 futures index recorded a 0.13 percent gain during a two-hour trading window.
Trump emphasized that the U.S. administration regarded Iran’s offer as entirely unacceptable and suggested that, under current conditions, the prospect of peace was not realistic. Israeli Prime Minister Benjamin Netanyahu also stated that to end the war, Iran’s uranium sites must be eliminated.
Critical regulatory steps expected in the U.S.
Analysts suggest Bitcoin’s strong performance above $80,000 this week could be shaped by two major legislative moves in the United States. Markus Thielen, CEO of 10x Research, pointed to two key developments in remarks shared with Cointelegraph.
On Monday, the Senate is expected to vote on Kevin Warsh’s nomination as Chair of the Federal Reserve. Thielen noted that Warsh is considered more hawkish than current Chair Jerome Powell, but believes his appointment could reduce policy uncertainty in the market.
Additionally, the Senate Banking Committee will review the CLARITY Act on Thursday. Thielen described this framework as one of the most significant regulatory proposals for digital assets in recent years and indicated that its passage could mark a pivotal moment for the entire crypto sector.
Latest moves in crypto and traditional markets
The escalation in U.S.-Iran hostilities at the end of February has directly impacted Bitcoin’s trajectory. Since then, the cryptocurrency has gained 29.7 percent, significantly outperforming global equities and gold in the same period.
Although Bitcoin had soared as high as $126,080 last October, recent geopolitical tensions led to losses that were partially recovered in the latest rally. CryptoAppsy data shows Bitcoin touched $82,347 during this recent wave of volatility. Observers note that, with both regulatory measures and geopolitical risks in the spotlight, more turbulence could be ahead for digital assets.
