Bitcoin heads for $80,000 as Iran reopens Strait of Hormuz

Bitcoin climbed toward $80,000 after Iran said the Strait of Hormuz was fully open to commercial traffic for the remainder of the ceasefire period, easing pressure on one of the world’s most important energy chokepoints and triggering a broader risk-on move across markets.

The largest cryptocurrency rose 5% on the news to as high as $77,700, according to CryptoSlate data. The move extended a weeklong rebound that has lifted Bitcoin nearly 7% from below $70,000 to its strongest level since the early February crash.

The rally set off a sharp liquidation wave across leveraged crypto positions. CoinGlass data showed about $243 million in liquidations over the past 1 hour, with most of the losses concentrated among traders positioned for further downside.

For context, Bitcoin short traders lost more than $100 million during the reporting period.

Meanwhile, the total liquidations topped $720 million over a longer 24-hour time frame. Notably, this is one of the largest market wipeouts since mid-March.

Iran opens Strait of Hormuz

The advance came as traders linked Bitcoin’s rebound to a sudden shift in the macro backdrop.

Iran on Friday declared the Strait of Hormuz completely open to commercial traffic during the ceasefire period.

In an April 17 post on X, Foreign Minister Seyed Abbas Araghchi said:

He added that vessels would have to follow a coordinated route set by Iran’s maritime authorities.

President Donald Trump confirmed the update and thanked Iran for reopening the waterway.

Following the news, data from oilprices.com showed that oil prices fell more than 11%. This reversed part of the war premium that had built up while the strait remained largely shut.

The Strait of Hormuz route carries roughly 20% of the world’s oil and liquefied natural gas flows, making it one of the most closely watched passages in global trade. Its narrow geography has long given Iran leverage during periods of conflict, allowing it to restrict maritime traffic and amplify pressure on energy markets.

During the recent standoff, only a small number of commercial vessels moved through the waterway each day.

Meanwhile, the latest development capped a volatile stretch in which the strait stayed mostly closed during the US-Iran war while both sides argued over the terms of a peace agreement.

What next for Bitcoin price?

For Bitcoin, the reopening of the Strait removed one of the clearest near-term threats hanging over risk assets.

This is because lower oil prices tend to ease inflation pressure and reduce fears of another surge in energy-driven volatility, a backdrop that can support speculative assets that had come under pressure during the regional escalation.

Already, the shift in tone is evident in derivatives markets, where traders began positioning for a push toward higher price targets.

On Coinbase-owned Deribit, the $80,000 call option has emerged as one of the most popular trades, with a notional value of more than $1.5 billion. The next-largest cluster of bullish positioning sat at $90,000, with about $914 million in value tied to that strike.

Prediction market activity also turned more optimistic. Polymarket data showed the odds of Bitcoin rising above $80,000 before the end of the year climbing past 88%. This is a sign that traders are increasingly treating that level as a near-term target rather than a distant upside scenario.