Bitcoin jumped to a two-month high on Friday after Iran declared that commercial traffic could flow freely through the Strait of Hormuz amid the ceasefire between Israel and Lebanon.
“In line with the ceasefire in Lebanon, the passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire,” Seyed Abbas Araghchi, Iran’s Foreign Minister, said in an X post before the opening bell.
Araghchi made clear that ships must transit the strait, through which 20% of the world’s oil flows, alongside a “coordinated route” outlined by Iranian officials. The 10-day ceasefire between Iran and Lebanon started on Thursday evening in the U.S.
Bitcoin recently changed hands around $77,400, a 5% increase over the past day, according to CoinGecko. That represented the digital asset’s highest price since early February and a more than 22.6% increase since conflict emerged in the Middle East seven weeks ago.
Altcoins notched greater gains over the same period: Ethereum rose 6% to $2,440 and XRP increased 6% to $1.49, while Solana jumped 6.4% to $90. On Wall Street, the S&P 500 and tech-heavy Nasdaq both surged to record highs.
Strategy’s stock price surged 12.5% to $168, its highest level in three months, according to Yahoo Finance. Meanwhile, Coinbase shares jumped 5% to $210, while Robinhood shares increased 5% to $92 on the day.
“THE STRAIT OF HORMUZ IS OPEN FOR BUSINESS,” U.S. President Donald Trump affirmed in a Truth Social post. Until the U.S. is able to fully realize terms of its agreement with Iran, however, the president said Iranian ships would be subject to a blockade.
“The reopening of the Strait of Hormuz is the risk-on signal the global markets have been waiting for,” Matt Mena, senior crypto research strategist at crypto asset manager 21Shares, said in a statement. “By removing one of the most significant geopolitical chokepoints in the world, Iran has effectively uncorked a massive wave of liquidity and investor confidence.”
WTI crude oil futures plunged following Araghchi’s announcement, on track to fall 11% on the day to $84 per barrel, according to Trading Economics. Earlier this month, the U.S. benchmark jumped to $115, representing its highest price since September 2022.
On Myriad, a prediction market owned by Decrypt’s parent company Dastan, traders began foreseeing WTI crude oil futures touching $55 before $120. Prior to Araghchi’s declaration, they penciled in as much as a 76% chance of the higher mark being hit on Friday.
What’s more, Myriad traders grew confident that the seven-day moving average of transit calls through the Strait of Hormuz would rise above 15 before the end of the month. They envisioned an 84% chance of that happening, up notably from a 45% chance a month ago.
Editor's note: This story was updated after publication with additional details.