Bitcoin and major stock indices rebounded sharply after early losses, driven by reports of Iranian cooperation with Oman to manage shipping traffic through the Strait of Hormuz. This development alleviated fears of disruptions in a critical oil route, allowing the Nasdaq to recover most of its 2% decline. Meanwhile, WTI crude oil prices, which had spiked following President Trump’s aggressive rhetoric towards Iran, fell nearly $6 per barrel on the news, highlighting the market’s sensitivity to geopolitical developments.

The Iranian officials emphasized that the proposed measures aim to ensure safe passage rather than impose restrictions, which could stabilize oil supply concerns and support broader market sentiment. Despite this recovery, Bitcoin remains under pressure, trading around $67,000 as geopolitical tensions persist and market dynamics shift.

Traders should note the fragile structure of the Bitcoin market, particularly the “negative gamma” zone below $68,000, which could trigger further selling if prices dip, reinforcing the need for caution in crypto positions amid ongoing volatility.

Source: coindesk.com