Bitcoin hits $78,348 after Strait of Hormuz reopens

Bitcoin rose to an intraday high of $78,348 after Iranian authorities announced the Strait of Hormuz was reopened, fueling a global risk-on rally. The gain put bitcoin’s 24-hour increase at about 4.1% and lifted its market value to roughly $1.56 trillion. The price was the highest since Feb. 4.

Reports of a ceasefire and renewed diplomatic momentum between Washington and Tehran, including a reported concession tied to a ceasefire between Israel and Lebanon, coincided with the reopening. Market participants treated the restoration of shipping through the strait as a reduction in the risk of an energy-driven inflation shock.

Oil prices fell sharply on the announcement. Brent crude moved below $89 per barrel from near $100, while U.S. crude (WTI) slipped toward $83 per barrel. The drop in oil coincided with gains in equities: European indexes rose and the S&P 500 added about 102 points to reach 7,143.79.

Crypto exchanges logged more than $810 million in total liquidations over 24 hours. Short positions in bitcoin accounted for a large share of the losses: roughly $273 million in bitcoin shorts were closed in a four-hour window and about $358 million in bitcoin positions were liquidated across the full day. Data showed bitcoin liquidations made up nearly 95% of roughly $380 million in overleveraged positions closed on major platforms during the period.

Since the start of April, bitcoin has gained more than 14% and it is up more than 20% since the onset of fighting in the Middle East. The cryptocurrency spent much of February trading in a narrow range and repeatedly failed to break the $70,000 level before the renewed rally this month.

Iran’s Islamic Revolutionary Guard Corps warned that continued U.S. blockades of shipping through the strait could violate the arrangement and undermine the ceasefire. Market participants will monitor whether the reported diplomatic progress holds and whether oil prices remain subdued.