Bitcoin Holds $66K as Trump Prioritizes Iran War Exit Over Reopening Hormuz
Bitcoin is trading around $66,000 following reports that U.S. President Donald Trump is prioritizing an exit from the Iran conflict. Citing sources, Trump aims to limit U.S. military involvement, focusing on degrading Iran’s navy and missiles while using diplomacy and pressing allies for further action if necessary. Safe passage for oil through the Strait of Hormuz is not a core objective, with Trump threatening Iran’s energy infrastructure if the strait remains closed. Trump’s approach signals a preference for deterrence and negotiation over prolonged conflict, constrained by economic risks, potential U.S. casualties, and domestic opposition. Financial markets initially rose, but have since declined; Bitcoin remains stable near the lower bound of its two-month consolidation phase at $66,600, down 1.6% in 24 hours and 7% weekly. Prediction markets are pessimistic on Bitcoin’s near-term prospects, while high oil prices—up 48% since the conflict began—fuel inflation concerns. Markets expect the Federal Reserve to keep interest rates unchanged. Analysts suggest rapid conflict de-escalation could boost risk assets, but Bitcoin needs robust institutional flows and regulatory certainty for a sustained rally. Probability of near-term ceasefire remains low at 3%.
