Bitcoin rips past $82,000, shorts liquidated after President Trump halts Hormuz operation sending oil price spiralling

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Bitcoin surged past $82,000 while oil prices plummeted due to a sudden easing of US-Iran tensions.

Data from CryptoSlate revealed that BTC continued its upward trend, gaining over 7% this week after President Trump halted a military operation in the Strait of Hormuz.

This rise in BTC price resulted in the liquidation of over $200 million from short traders in the past 24 hours, according to CoinGlass data.

The news of a potential US-Iran agreement calmed fears of further disruptions in the energy market, leading to a sharp drop in oil prices, with Brent crude falling by 10% to $97 per barrel.

A shift in global dynamics

The change in tone came as Trump announced a pause in the US operation in the Strait of Hormuz, aiming to test the possibility of an agreement with Iran.

Reports indicated progress towards a memorandum of understanding between the US and Iran to de-escalate tensions and facilitate negotiations.

Trump took to Truth Social to express optimism about resolving the conflict, signaling a potential reopening of the Strait of Hormuz for all vessels.

Iran also confirmed the secure transit through the Strait, attributing it to the end of US threats and new procedures for vessel movement.

These developments had a direct impact on the oil market, causing prices to drop significantly.

Institutional demand drives Bitcoin’s rise

Bitcoin’s climb above $82,000 was supported by institutional demand, with US-listed Bitcoin ETFs witnessing increased inflows since May.

Corporate treasuries, particularly Strategy, have been acquiring significant amounts of Bitcoin, contributing to the cryptocurrency’s upward momentum.

Experts believe that the current wave of institutional demand could push Bitcoin beyond the $80,000 to $85,000 range.

Derivatives and options traders are targeting further gains above $90,000, with call options dominating trading volumes on platforms like Deribit.

Analysts warn of the risks associated with the accumulation of speculative capital and the potential for market corrections.

Overall, Bitcoin’s current trajectory is influenced by institutional accumulation, ETF inflows, and corporate demand, setting the stage for a potential push towards the $90,000 mark.