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Bitcoin (BTC) surged to $77,000 amid expectations of a peace agreement between the United States and Iran. The cryptocurrency market, which had faced increased selling pressure due to concerns over escalating Middle East tensions, quickly reversed course after remarks by U.S. President Donald Trump about progress in peace negotiations.
CryptoPotato reported on May 24 (local time) that Bitcoin recovered most of its Friday and Saturday losses after Trump hinted at the possibility of a peace agreement between the United States and Iran. Bitcoin had previously fallen from over $77,000 on Friday to a monthly low of $74,200 amid fears of escalating Middle East tensions. However, following Trump's remarks, it jumped to slightly above $77,000.
Through his social media platform, Trump stated that he had "very good conversations" with leaders of several regional countries, including Saudi Arabia, the United Arab Emirates, Qatar, Pakistan, Turkey, Egypt, Jordan, and Bahrain, regarding the Iran issue and a memorandum of understanding related to peace. He explained that an agreement had been largely negotiated between both sides and regional countries, with only final adjustments remaining.
Trump said, "The final aspects and details of the agreement are currently being discussed and will be announced soon. In addition to several other elements of the agreement, the Strait of Hormuz will be opened." Trump also stated that his conversation with Israeli Prime Minister Benjamin Netanyahu went very well.
However, subsequent reports from both sides remained conflicting. Iran's Fars News claimed that U.S. officials, in several messages sent to Iran, admitted that Trump's post was primarily for domestic U.S. promotion and media consumption, and advised not to pay attention to the remarks. In contrast, The New York Times reported that Iran had agreed to give up highly enriched uranium under a new agreement.
Bitcoin's rebound also spread to the altcoin market. Ethereum (ETH) rose above $2,100 after falling to $2,000 the previous day. NEAR, ONDO, MORPHO, and Hyperliquid recorded larger gains on the day. According to CoinGlass data, over $300 million in short positions were liquidated during the cryptocurrency market's rally.
Expectations of easing tensions in the Middle East quickly reversed the cryptocurrency market, which had been suppressed by short-term selling pressure. Bitcoin recovered a significant portion of its losses due to fears of escalating conflict, and the market increased volatility by simultaneously reflecting Trump's peace agreement remarks and conflicting follow-up reports.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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