Bitcoin Shrugs off Strait of Hormuz Blockade to Hit $72,629 Intraday High – Markets and Prices Bitcoin News

Key Takeaways:

• Bitcoin rose to $72,629 on April 13, recovering from a flash crash caused by failed U.S.-Iran talks.
• The Strait of Hormuz blockade pushed oil to $100, triggering $59 million in Bitcoin short liquidations.
• Analysts expect a U.S. confrontation with the IRGC as China weighs a response to the naval blockade.

Failed Ceasefire Talks Trigger Flash Volatility

Bitcoin shrugged off renewed geopolitical tensions sparked by a U.S. Navy blockade of the Strait of Hormuz, rising to an intraday high of $72,629 around 1:30 p.m. Monday. The rally marked a reversal from earlier in the session when the cryptocurrency slipped to $70,526, the first time it had touched that threshold since April 9.

After entering the weekend on an upswing fueled by hopes for a positive outcome in U.S.-Iran talks, the bitcoin rally snapped as reports of the negotiations’ collapse revived fears of a military confrontation. Market data shows bitcoin was attempting to test the $74,000 resistance level before news of the failed ceasefire sparked a sell-off, erasing more than $2,000 in value within a single hour.

Despite remaining suppressed throughout much of the morning, bitcoin began a market-defying recovery that reclaimed the $72,000 mark, representing a 2% gain over a 24-hour period. The surge pushed bitcoin’s market capitalization from $1.41 trillion to $1.45 trillion, lifting the broader crypto economy’s total valuation to $2.53 trillion.

Bitcoin’s price action contrasted with that of Asian and European stocks, which traded marginally lower on April 13. Those equities were weighed down by investor fears that Washington and Tehran may be preparing for a second round of bombing campaigns. Conversely, key U.S. indices remained in the green, albeit with marginal gains.

While the U.S. has so far avoided direct engagement with Iran’s Islamic Revolutionary Guard Corps in the Strait, some observers expect this to happen in the next phase of the conflict. Others warn the blockade could draw a reaction from China, as its vessels are likely targets of U.S. restrictions. Iranian officials have warned of dire consequences regarding the blockade, which was scheduled to begin at 10 a.m. EDT.

The announcement acted as a catalyst for energy markets, sending crude prices careening toward the $100-per-barrel psychological threshold. Beyond immediate price action, the prolonged closure of the strait has exacerbated structural vulnerabilities in the global supply chain, heightening the risk of catastrophic fuel shortages for energy-dependent industrial powerhouses across Asia.

Meanwhile, the bitcoin rebound triggered nearly $59 million in short-position liquidations, compared to $12.5 million in liquidated longs.