BTC Surges 2.3% Following Trump's Rejection of Iranian Peace Terms
Markus Thielen, CEO of 10x Research, suggests two upcoming US Senate decisions this week may help sustain Bitcoin's position above the $80,000 threshold.
On Sunday, Bitcoin experienced a momentary decline before climbing past $82,000 following US President Donald Trump's dismissal of Iran's counter-proposal for a peace agreement, potentially extending ongoing tensions throughout the Middle East region.
"I don't like it — TOTALLY UNACCEPTABLE," Trump said in a post to Truth Social on Sunday after reading Iran's proposal to end the war. The Iranian government had previously demanded that the United States provide war reparations and release frozen Iranian financial assets.
Within a 45-minute window following Trump's social media post, Bitcoin (BTC) dropped from $81,430 to $80,520, before experiencing a sharp reversal that saw it climb nearly 2.3% to reach $82,347 in less than three hours afterward, based on data from CoinGecko. The upward movement in Bitcoin's value also led to the liquidation of approximately $64 million in short positions during the past four hours, as reported by Coinglass data.
The conflict between the US and Iran, combined with the ongoing dispute over dominance of the Strait of Hormuz — a critical passage responsible for one-fifth of global oil trade — has generated substantial turbulence across financial markets during the last ten weeks, especially within oil markets, where prices climbed an additional 4.6% to reach $98.7 per barrel following Trump's most recent statements.
The futures index for the S&P 500 has increased by 0.13% since trading commenced approximately two hours following Trump's social media post.
Trump's rejection of Iran's counter-proposal eliminates the possibility of an immediate conclusion to the conflict on Wednesday. Additionally, Israeli Prime Minister Benjamin Netanyahu has stated that the war will continue until Iran's uranium facilities are completely dismantled.
Two Senate Decisions May Drive Bitcoin's Regulatory Progress This Week
According to 10x Research CEO Markus Thielen in his statement to Cointelegraph, Bitcoin's resilience at the $80,000 price point may receive additional support from two positive outcomes in the US Senate during the coming week.
"Two catalysts stand out this week," a Senate vote on Monday for Kevin Warsh's confirmation as Federal Reserve chair and the Senate Banking Committee's markup on the CLARITY Act on Thursday, Thielen said.
While acknowledging that "Warsh is widely regarded as more hawkish on inflation" compared to Jerome Powell, the incumbent Fed Chair, Thielen emphasized that his confirmation would eliminate the "uncertainty overhang."
The CLARITY Act was characterized by Thielen as the "most significant piece of crypto legislation in years," with the additional observation that it has the potential to serve as a "turning point for regulatory certainty across digital assets."
"Both events lean bullish for Bitcoin: regulatory clarity reduces institutional friction, and a smooth Fed leadership transition avoids the policy uncertainty that typically pressures risk assets."
Bitcoin Has Gained 29.7% Since the Beginning of US-Iran Hostilities
Notwithstanding the ongoing US-Iran conflict, Bitcoin has achieved a 29.7% increase in value since the commencement of US-Iran hostilities on Feb. 28, when an American airstrike resulted in the death of Iran's Supreme Leader Ayatollah Ali Khamenei.
Since the outbreak of the US-Iran war, Bitcoin has demonstrated superior performance compared to both the S&P 500 index and gold, recovering some of the losses incurred since October when Bitcoin reached a peak of $126,080.