Cryptocurrency markets moved higher by around 2.5% after US President Donald Trump issued conflicting statements regarding a potential agreement with Iran to reopen the Strait of Hormuz, including reports suggesting a possible ceasefire.

In a post on Truth Social on Sunday, Trump warned that Iran would be “living in Hell” if the critical shipping route was not reopened. At the same time, he indicated in a Fox News interview that negotiations are ongoing and suggested there is a “good chance” of reaching a deal within 24 hours.

The mixed messaging triggered a short-term recovery across cryptocurrency markets. Total market capitalization increased by approximately $70 billion to reach an 11-day high of $2.44 trillion during early Monday trading. Bitcoin (BTC) also climbed, briefly touching $69,500 on Coinbase, according to TradingView data.

The price movement led to roughly $255 million in liquidations over the past 24 hours, with about 73% of those positions being short trades, based on CoinGlass figures.

Conflicting rhetoric fuels uncertainty

Trump’s latest comments come after more than a month of conflict, which has contributed to rising global oil prices and heightened concerns about potential economic fallout.

While he had previously given Iran a 10-day deadline to reopen the Strait of Hormuz, his latest remarks suggested the timeline has shortened, with a new deadline set for Tuesday. He warned that failure to comply could result in US strikes on Iranian infrastructure, including power plants and bridges.

“There will be nothing like it!!! Open the fuckin’ Strait, you crazy bastards, or you’ll be living in Hell - JUST WATCH!” Despite the aggressive tone, Trump also acknowledged ongoing negotiations and reiterated the possibility of a resolution. “If they don’t make a deal and fast, I’m considering blowing everything up and taking over the oil.”

A report from Axios added further complexity, indicating that the US, Iran and regional intermediaries are discussing a potential 45-day ceasefire that could eventually lead to an end to the conflict.

Oil prices rise as inflation concerns grow

The geopolitical situation continues to impact energy markets, with crude oil prices climbing to around $112 per barrel on Monday following the disruption of supply routes.

According to The Kobeissi Letter, if oil prices remain at current levels for several weeks, inflation in the United States could rise to approximately 3.7% based on Consumer Price Index projections.

The report also noted that since the conflict began on Feb. 28, Americans have been spending an additional $240 million per day on fuel, underscoring the broader economic impact of the ongoing tensions.

Sources:

https://www.foxnews.com/politics/trump-vows-us-will-strike-irans-power-plants-bridges-strait-of-hormuz-not-reopened

https://cointelegraph.com/news/crypto-markets-bounce-trump-delays-deadline-for-iran

https://truthsocial.com/@realDonaldTrump/posts/116351998782539414

https://x.com/KobeissiLetter/status/2040926203851211207

https://www.coinglass.com/liquidations