Bitcoin staged a sharp recovery on Monday, jumping from $68,500 to an intraday high of $71,801 within an hour, as U.S. President Donald Trump unexpectedly backed away from his threat to “destroy” Iranian power plants. The move sent a wave of relief across global risk assets, with the cryptocurrency gaining 3.2% on the day and restoring its market cap to $1.4 trillion.
Trump’s Pivot Sparks Risk-On Shift
Earlier in the session, bitcoin had been trading near weekly lows of $67,354, pressured by escalating rhetoric between Washington and Tehran. Trump’s social media post on Monday—confirming a five-day delay and proposing joint U.S.-Iran control of the Strait of Hormuz—reversed the sentiment almost instantly. The energy sector saw the most dramatic reaction: Brent crude plummeted by roughly 8% to 13% from its session peaks, settling back near $100 per barrel after briefly threatening $110.
Global Equities: From Fear to Relief
Asian markets had priced in a possible strike, with Japan’s Nikkei closing 3.5% lower and South Korea’s Kospi tumbling 6.5% amid fears of a full-scale regional war. European indexes opened deep in the red but staged a midday rally after the delay announcement, recouping most early losses. U.S. stocks jumped at the opening bell, supported by the de-escalation signal and falling oil prices.
Despite the rebound, bitcoin remains 4% below its seven-day high of $76,013 reached on March 17. The correlation between bitcoin and global equities has strengthened during the third week of March, eroding its “digital gold” narrative. Traders now focus on diplomatic talks: any breakdown could push the $70,000 support level back into play.
What’s Next?
The five-day deferral offers a temporary floor for bitcoin and a ceiling for oil, but the market remains on edge. The outcome of negotiations will determine whether the rally extends or gives way to renewed selling. For now, the crypto market is closely watching the Strait of Hormuz—and the White House’s next move.