Cryptocurrency markets climbed approximately 2.5% on Monday following a series of contradictory statements from US President Donald Trump regarding a potential agreement with Iran over the Strait of Hormuz. Reports of a possible 45-day ceasefire that could bring a permanent end to the ongoing conflict added further uncertainty to the situation. The total crypto market capitalization rose roughly $70 billion to reach $2.44 trillion, an 11-day high, during early Monday trading. Bitcoin briefly touched $69,500 on Coinbase, according to data from TradingView.
The market movement triggered approximately $255 million in total liquidations over a 24-hour period, with around 73% of those being short positions, according to figures from CoinGlass. The modest price recovery reflects heightened sensitivity among traders to geopolitical developments in the Middle East. Volatility is expected to persist as negotiations between the US and Iran remain unresolved. Investors are closely watching whether a formal agreement materializes within the timeframe Trump has indicated.
Trump’s remarks have been notably aggressive in tone. In a post on the Truth Social platform on Sunday, he warned that Iran would face severe consequences if the Strait of Hormuz is not reopened, using explicit language to underscore the threat. He also stated he was considering military action against Iran’s power plants and bridges if a deal is not reached by Tuesday. In a separate statement, he said he was contemplating seizing control of the region’s oil supplies if negotiations fail.
Despite the combative rhetoric, Trump also struck a more measured tone in a Fox News interview, acknowledging that Iran is currently engaged in negotiations. He expressed optimism that there was a strong chance of reaching a deal within 24 hours. This contrast between threatening language and diplomatic openness has contributed to the mixed signals markets are attempting to interpret. The situation has been further complicated by a report from Axios indicating that the US, Iran, and regional mediators are actively discussing the terms of a 45-day ceasefire.
The conflict, which began on February 28, has now lasted more than a month and has had significant consequences for global energy markets. Crude oil prices have risen back to approximately $112 per barrel as of Monday morning, driven by the closure of the Strait of Hormuz and ongoing instability in the region. Analysts warn that sustained oil prices at these levels could contribute to broader economic pressures. Some observers fear the situation could tip the global economy toward recession.
Financial commentary outlet The Kobeissi Letter noted that if oil prices remain at current levels for another seven weeks, US Consumer Price Index-related inflation could rise to approximately 3.7%. The same source reported that Americans have been spending an additional $240 million per day on fuel costs since the war began. These figures underscore the domestic economic impact of the conflict beyond financial markets. The combination of inflationary pressure and geopolitical uncertainty continues to weigh on investor sentiment across asset classes.
Originally reported by CoinTelegraph.
