Key takeaways
- Bitcoin rebounded past $74,000 on May 29 after a sharp intraday decline to a multi-week low of $72,395.
- Donald Trump’s post on Truth Social sparked a surge in U.S. stocks and slashed Brent crude prices to $91.
- Analysts will monitor Tehran over the next 48 hours to see if Iran verifies the deal or if it fails.
Bitcoin Recovers $74,000 After Intraday Drop
Friday May 29 bitcoin reclaimed $74,000 just hours after plunging to a multi-week low of $72,395. THE cryptocurrencyThe push follows reports that Iran and the United States have reached a deal to reopen the Strait of Hormuz, a key shipping lane through which 20% of the world’s crude oil supply passes.
Bitcoin spent the morning oscillating in a tight range between $73,000 and $73,500 before plunging. Just after 5 a.m. EST, the cryptocurrency lost more than $1,500 to hit a daily low. But the market quickly reversed its trend when reports surfaced of a deal between Washington and Tehran. Once US President Donald Trump confirmed the deal via Truth Social, a massive wave of buying was propelled bitcoin at $74,223.
Although the cryptocurrency fell back below $74,000 at 1:55 p.m. EST, it maintained a 24-hour gain of around 0.6%. This marginal increase reduced Bitcoin’s 30-day losses to 2.7% and pushed its market cap past $1.48 trillion.
Although the announced memorandum of understanding remains subject to formal ratification by Trump and Iranian leaders, the president’s confirmation on social media was enough to trigger a market reversal, sparking a rally in U.S. stocks while triggering a sell-off in energy markets.
Brent crude, which started the week flirting with the $100 a barrel threshold, plunged to an intraday low of $91.47, while West Texas Intermediate (WTI) fell to $87. The collapse in crude prices, coupled with the imminent reopening of the Strait of Hormuz, is expected to provide substantial deflationary relief to the global economy, potentially allowing central banks to ease their aggressive monetary tightening.
However, geopolitical analysts warn that a permanent ceasefire remains a distant prospect unless Tehran publicly corroborates Trump’s description of the deal. This skepticism is underlined by a glaring narrative disconnect: while Washington claims a breakthrough is imminent, Iranian state media and top negotiators have dismissed the purported conditions as a Western wish list, saying no text has been finalized. Observers say the next 48 hours will be crucial in determining whether the diplomatic framework collapses or holds.
Meanwhile, Bitcoin’s volatile price action wiped out $29.5 million in short bets and $20 million in long bets over a four-hour window. Total liquidations in the cryptocurrency market reached $111.7 million during this period, with short liquidations accounting for $69.3 million.
