Bitcoin Reclaims $74,000 Following Intraday Dip
On Friday, May 29, bitcoin reclaimed $74,000 just a few hours after it plunged to a multiweek low of $72,395. The cryptocurrency’s surge followed reports that Iran and the U.S. had reached an agreement to reopen the Strait of Hormuz, a critical shipping lane through which 20% of the global crude oil supply passes.
Bitcoin spent the early morning oscillating in a tight range between $73,000 and $73,500 before diving. Just after 5 a.m. EST, the cryptocurrency shed over $1,500 to hit a daily low. But the market quickly reversed course as reports emerged of a Washington-Tehran agreement. Once U.S. President Donald Trump confirmed the deal via Truth Social, a massive wave of buying propelled bitcoin to $74,223.
Although the cryptocurrency dipped back below $74,000 by 1:55 p.m. EST, it maintained a 24-hour gain of roughly 0.6%. The marginal increase narrowed bitcoin’s 30-day losses to 2.7% and pushed its market capitalization past $1.48 trillion.
Although the reported memorandum of understanding remains subject to formal ratification by Trump and Iranian leadership, the president’s social media confirmation was enough to spark a market reversal—igniting a rally in U.S. equities while triggering a sell-off in energy markets.
Brent crude, which started the week flirting with the $100-per-barrel threshold, plunged to an intraday low of $91.47, while West Texas Intermediate (WTI) declined to $87. The collapse in crude prices, paired with the imminent reopening of the Strait of Hormuz, is expected to inject substantial deflationary relief into the global economy, potentially allowing central banks to ease off aggressive monetary tightening.
However, geopolitical analysts warn that a permanent ceasefire remains a distant prospect unless Tehran publicly corroborates Trump’s characterization of the deal. The skepticism is underscored by a stark narrative disconnect: while Washington claims a breakthrough is imminent, Iranian state media and top negotiators have dismissed the purported terms as a Western wishlist, asserting that no text has been finalized. Observers believe the next 48 hours will be critical 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 across the cryptocurrency market reached $111.7 million during that period, with short liquidations accounting for $69.3 million.
