Bitcoin jumps back to $74K after Trump lifts Hormuz blockade

Bitcoin rebounded sharply to hover around $74,000 on May 29, following President Donald Trump's unexpected announcement that the United States would end its naval blockade of the Strait of Hormuz. The move effectively eased several weeks of geopolitical strain that had sent ripples through energy and crypto markets alike.

The Strait of Hormuz, a critical maritime chokepoint responsible for about 20% of global oil shipments, had been a focal point for heightened tensions after the U.S. imposed the blockade. This action triggered surges in oil prices and weighed on risk appetite across markets, injecting volatility into Bitcoin’s price as traders grappled with uncertainty.

With the blockade lifted, risk assets, led by Bitcoin, found footing. The cryptocurrency clawed back losses it incurred as the blockade was enforced in early May, when it dipped below $68,000. Bullish investors interpreted the de-escalation as a indicator of reduced systemic risk, prompting a wave of re-entry into BTC positions.

Still, the precise impact of geopolitical shifts on crypto remains complex. While oil markets typically react swiftly to supply disruptions or their removal, Bitcoin’s price action reflects a broader mosaic of drivers including macroeconomic data, regulatory narratives, and market sentiment. Crypto traders are now parsing whether this relief is durable or vulnerable to fresh flashpoints in a persistently unstable Middle East.

Traders should also watch for confirmations from official government channels to verify the permanence of the blockade’s end. Any reversal or renewed tensions would likely recalibrate risk premiums sharply and pressure Bitcoin’s recovery. Near-term resistance zones at $75,000 and $77,000 will be crucial tests for bulls aiming to extend gains.

Liquidity conditions across major exchanges remain healthy, supporting orderly price discovery as appetite returns. However, Bitcoin’s wild swings in 2026 have reinforced that geopolitical variables will continue to play an outsized role in shaping crypto’s trajectory. The market’s reaction to growing geopolitical indicators – including developments around Iran and U.S. foreign policy – will be a vital watchpoint in the weeks to come.