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

A notable development has hit the crypto markets. Bitcoin rose above $82,000 as oil prices tumbled amid a powerful tailwind from a sudden and dramatic de-escalation in US-Iran geopolitical tensions. Data from showed that BTC extended a weeklong rebound that has lifted its value by more than 7% this week after President Donald Trump paused a US military operation in the Strait of Hormuz. BTC's upward price movement led to the liquidation of over $200 million from short traders during the last 24 hours, according to CoinGlass data.

This came as reports of a possible US-Iran framework eased fears that the conflict would continue disrupting one of the world’s most important energy corridors. Following the news, crude oil prices entered a freefall, with Brent crude plunging by 10% to $97 per barrel, effectively erasing a significant portion of the geopolitical risk premium that had built up since late February. West Texas Intermediate (WTI) mirrored the collapse, sliding 9.

Market Dynamics

82% to $88 per barrel. A sudden thaw in the Strait of Hormuz The catalyst for the shifting global tides began with Trump’s decision to pause “Project Freedom,” the US operation aimed at reopening the Strait of Hormuz to stranded commercial ships. Trump said the pause would be short while Washington tested whether a final agreement with Iran could be reached.

The move marked a change in tone after weeks of military pressure around one of the world’s most important energy corridors, where shipping restrictions had fed volatility across crude, refined products, and Asian energy markets. Meanwhile, this pause was followed by reports that the US and Iran were moving toward a memorandum of understanding aimed at halting the conflict and creating room for broader negotiations. The proposed framework, led on the US side by envoys Steve Witkoff and Jared Kushner, would seek to normalize commercial transit through the Strait of Hormuz while opening a path toward a wider settlement.

Following this news, Trump wrote on Truth Social: “Assuming Iran agrees to give what has been agreed to, which is, perhaps, a big assumption, the already legendary Epic Fury will be at an end, and the highly effective Blockade will allow the Hormuz Strait to be OPEN TO ALL, including Iran. ” Notably, Tehran also softened its public posture. Iran’s Revolutionary Guards Navy said transit through the Strait of Hormuz was secure, citing the end of US threats and new procedures for vessels moving through the area.

Market Impact

The Guards did not describe the measures in detail, but thanked ship owners and captains for complying with Iranian rules. For markets, the immediate effect of these developments was visible in oil. Crude prices fell sharply as traders reduced the war premium tied to Hormuz disruption.

That gave Bitcoin and other risk assets a clearer macro backdrop, as lower oil prices eased fears that an energy shock would feed inflation, delay Federal Reserve rate cuts, and tighten financial conditions. Bitcoin catches relief bid as institutional demand deepens Bitcoin’s climb above $82,000 put it back near a supply zone traders have watched since the market broke down earlier this year, with the $80,000 to $85,000 range emerging as a key test for the rebound. That zone combines former support, short-term profit-taking, and new leveraged positioning.

A clean move through it could strengthen the market’s longer-term structure, while another rejection would suggest the rally still depends on fragile macro relief rather than durable spot demand. Considering this, market experts believe the current wave of institutional demand could lift the top crypto out of the range. Notably, US-listed Bitcoin exchange-traded funds have seen renewed demand since the start of May, reinforcing the rebound through regulated investment channels rather than only through offshore leverage.

Crypto markets are watching this development closely as investors weigh its potential impact on prices.