Bitcoin and broader risk assets rallied after Donald Trump said, before the U.S. stock market opened, that talks with Iran had made “effective” progress and that a planned military strike on Iranian energy facilities would be delayed by five days. Iran later denied that any talks existed, and the reversal in messaging quickly fed back into global markets.
Bitcoin rebounds from $67,000 as shorts get squeezed
Crypto reacted first. Following the headline, Bitcoin bounced from around $67,000 and briefly broke above $71,000. The source described the move as short covering after geopolitical risk appeared to ease, at least for the moment.
The speed of the move led to large liquidations across derivatives markets. Data cited in the source showed short liquidations in crypto reached more than $270 million to $360 million within hours, adding forced buying pressure to the rally. Major tokens including ETH and SOL also moved higher, generally gaining 3% to 5%.
Stocks rise, oil drops, safe-haven trades fade
Traditional markets repriced just as quickly. The three major U.S. stock indexes all moved higher after the announcement, as traders stepped back from concerns that surging energy costs could reignite inflation. According to the source, money rotated back into technology, airline, and banking shares.
Oil saw the sharpest reaction. Brent crude fell 7% to 10% at one point, returning to around $100, while WTI dropped below $90. Gold and the U.S. dollar index also pulled back, reflecting weaker demand for defensive positions as the market shifted from a war premium to a diplomatic premium.
The five-day window now anchors market attention
The move did not settle the market. Iran rejected the claim that direct negotiations with the U.S. were underway and said Trump’s remarks were intended to pressure oil prices. After the initial surge, that contradiction led to renewed volatility.
The key near-term marker is now the five-day delay. The source said that if no concrete diplomatic outcome appears during that period, markets may start pricing in the risk of a stronger military response, which could send oil higher again and put pressure back on Bitcoin and other risk assets. It also noted that if oil prices stabilize, that could help ease inflation pressure in 2026 and leave more room for the Federal Reserve on rates.