Rebeca Moen
May 11, 2026 03:10
Bitcoin surged 2.3% to $82,350 following Trump’s rejection of Iran’s peace offer, wiping out $64M in short positions.
Bitcoin (BTC) surged 2.3% to $82,350 on Sunday after U.S. President Donald Trump rejected Iran’s peace proposal, signaling prolonged tensions in the Middle East. The move erased nearly $64 million in short positions, according to Coinglass data.
The cryptocurrency initially dipped to $80,520 following Trump’s comments on Truth Social, where he labeled Iran’s counteroffer as “TOTALLY UNACCEPTABLE.” Within three hours, Bitcoin reversed course, climbing to $82,347 per CoinGecko data. This volatility underscores Bitcoin’s role as a potential hedge during geopolitical uncertainty.
Market reactions extended beyond crypto. Oil prices jumped 4.6% to $98.70 per barrel, reflecting concerns over the ongoing conflict near the Strait of Hormuz, a critical chokepoint for global oil trade. Meanwhile, S&P 500 futures rose a modest 0.13% shortly after Trump’s announcement.
The U.S.-Iran war, which began in late February, has disrupted global markets for over two months. Israeli Prime Minister Benjamin Netanyahu added fuel to the fire, stating the conflict would persist until Iran’s nuclear facilities are dismantled—a comment that further clouds the timeline for resolution.
Regulatory Catalysts Could Support Bitcoin
Bitcoin’s recent price resilience might also benefit from upcoming U.S. regulatory developments. Markus Thielen, CEO of 10x Research, pointed to two key catalysts this week: the Senate’s vote on Kevin Warsh’s nomination as Federal Reserve chair on Monday and the Senate Banking Committee’s markup of the CLARITY Act on Thursday.
“Both events lean bullish for Bitcoin,” Thielen told Cointelegraph. “Regulatory clarity reduces institutional friction, and a smooth Fed leadership transition avoids the policy uncertainty that typically pressures risk assets.”
The CLARITY Act, described as a landmark piece of crypto legislation, could provide much-needed regulatory certainty for digital assets, potentially encouraging greater institutional adoption.
BTC Up Nearly 30% Amid Geopolitical Tensions
Since the U.S.-Iran conflict erupted on February 28, Bitcoin has gained 29.7%, outperforming traditional safe-haven assets like gold and even the S&P 500. The cryptocurrency has steadily rebounded from its October high of $126,080, regaining some lost ground despite mounting global uncertainty.
As the conflict continues to escalate, Bitcoin’s performance could remain tied to geopolitical developments. Traders will also be closely watching U.S. regulatory progress this week for signs of how it may shape the crypto market in the months ahead.
Image source: Shutterstock
