Bitcoin traded above $69,000 on Monday after Donald Trump delayed his deadline for Iran from Monday to Tuesday night, while continuing to warn of potential strikes on key infrastructure.
Summary
Bitcoin moved past $69,000 after Trump extended the Iran deadline and reiterated threats of strikes on energy facilities.
The continued closure of the Strait of Hormuz has pushed oil prices above $109, increasing market volatility.
Over $104.5 million in Bitcoin short positions were liquidated in 24 hours, boosting the rally through forced buying.
Trump stated that the U.S. could “blow everything up” if Iran fails to reach an agreement by 01:00 GMT on Wednesday. This marks the fourth revision to Washington’s timeline for possible military action, as tensions remain high and the Strait of Hormuz stays shut.
Iran, meanwhile, has denied reports of active negotiations and issued warnings toward neighboring oil-producing nations within OPEC. Officials have also explored alternatives to the petrodollar system, reportedly allowing certain oil shipments in exchange for payments in Bitcoin or euros—potentially contributing to increased spot demand for the cryptocurrency.
Strait of Hormuz disruption keeps oil elevated
The Strait of Hormuz has remained closed for more than three weeks, disrupting a critical route that accounts for roughly 20–30% of global oil supply.
The U.S. has repeatedly demanded its reopening, warning of severe strikes on Iran’s energy infrastructure if conditions are not met. Iran, however, has indicated it may keep the passage closed while considering transit fees to offset war-related losses, suggesting it could reopen once compensation mechanisms are agreed upon.
Oil markets have already reacted strongly, with Brent crude trading above $109 per barrel. Continued geopolitical tension and elevated energy prices could add pressure on risk assets, potentially capping Bitcoin’s near-term gains.
Short liquidations drive Bitcoin’s rally
Bitcoin surged past $69,000 for the first time since early April, rising about 2.7% during Monday’s session. It briefly touched an intraday high near $69,321 before stabilizing around $69,100.
The move triggered a wave of short liquidations, with data from CoinGlass showing over $104.5 million in short positions wiped out within 24 hours, out of roughly $196 million in total crypto liquidations.
Such liquidations often accelerate upward momentum, as traders forced to close short positions must buy back the asset, adding further demand.
If Bitcoin manages to sustain levels above $69,000, the next resistance zone is expected between $70,000 and $72,000.
