Bitcoin, crypto market surge as Iran reopens Strait of Hormuz

The general crypto market surged 4% on Friday, adding over $100 billion in value following Iran's announcement that it has reopened the Strait of Hormuz to commercial ships for the duration of the ongoing ceasefire between the US and Iran.

"In line with the ceasefire in Lebanon, the passage for all commercial vessels through Strait of Hormuz is declared completely open for the remaining period of ceasefire, on the coordinated route as already announced by Ports and Maritime Organisation of the Islamic Rep. of Iran," Iran's Foreign Minister Seyed Abbas Araghchi wrote in an X post on Friday.

US President Donald Trump also commented on the development, confirming in a Truth Social post that Iran had reopened the strategically important waterway. Trump added that the US is working with Iran to remove all sea mines.

Crypto, stocks rally as Iran opens Strait of Hormuz

Following the news, West Texas Intermediate (WTI) crude fell as much as 11% intraday to near $80 per barrel, while Brent crude declined 9% to $90 per barrel.

Equity markets also moved higher, with the Dow Jones Industrial Average rising more than 950 points, while the S&P 500 and the Nasdaq gained 1.2% and 1.1%, respectively.

Among crypto assets, Bitcoin (BTC) led the market recovery, surging over $77,000 following the announcement. Ethereum (ETH), XRP and Solana (SOL) also rose 4%, 5% and 4%, respectively. The move reflects a broader pattern seen during periods of de-escalation, in which reduced uncertainty around geopolitical crises supports risk assets.

Analytical platform CryptoQuant previously noted that Bitcoin's earlier rise toward $76,000 was accompanied by a sharp increase in exchange inflows, signaling a more cautious underlying market structure. 

The analyst added that if Bitcoin holds above $76,000 or climbs toward the $76,800 Traders' Realized Price, realized profits could rise toward the $1 billion level. That would signal a stronger wave of distribution, potentially slowing the rally amid the improved macro backdrop.

Other notable crypto sectors surged alongside Bitcoin. The AI category recorded 6% gains with Chainlink (LINK), Bittensor (TAO) and Render (RENDER) rising 3%, 8% and 5%, respectively. The memecoin sector also saw a 10% gain, with trading volumes rising alongside.