The $78K Bull Trap? Why Iran’s Latest Statement Could Send Bitcoin Tumbling

Bitcoin’s price recovered impressively yesterday by surging to a 10-week peak of over $78,000 after US President Donald Trump said the Strait of Hormuz was opened.

However, this rally could be in jeopardy now, as Iran’s Speaker of Parliament, Ghalibaf, denied many of the POTUS’s positive statements.

All Were False

Recall that Trump took to his social media to announce yesterday that the Strait of Hormuz was finally reopened, as both sides had made great progress on negotiating a permanent peace deal. Later on, he doubled down, claiming that the deal was “mostly complete,” there would be more talks this weekend, and, perhaps most importantly, that Iran had agreed to halt its nuclear program indefinitely.

Although Iranian officials confirmed the reopening of the Strait initially, further statements on the matter provided a different perspective. Ghalibaf said the key Strait will not remain open if the US blockade continues, and the passage will be conducted based on the “designated route” and with “Iranian authorization.”

Ghalibaf went further, indicating that Trump made overall seven claims in one hour, but they were all false. He outlined the significance of “media warfare and engineering public opinion,” but the Iranian nation “is not affected by these tricks.”

Will BTC Falter?

Bitcoin reacted immediately after Trump’s initial announcement, with an impressive surge toward $77,000. As the POTUS continued to try to de-escalate the situation, BTC kept climbing and hit $78,400 for the first time since early February.

It retraced in the following hours and now sits inches above $77,000. However, given the fact that all these gains were attributed to the seemingly de-escalating tension in the Middle East, its progress could be halted soon if Iran’s claims are proven to be true.

History has shown that BTC tends to remain relatively stable over the weekend, unless there’s some major escalation, and slides once the legacy futures markets open on Sunday evening. For now, the retracement to $77,000 is not significant, but there might be more volatility in the next 48 hours.

The post The $78K Bull Trap? Why Iran’s Latest Statement Could Send Bitcoin Tumbling appeared first on CryptoPotato.