Bitcoin Surges Past $77,000 as Iran Declares Strait of Hormuz Fully Open Amid Ceasefire Progress

Bitcoin price surged past $77,000 this morning after Iran declared the Strait of Hormuz fully open under a new ceasefire framework. President Donald Trump amplified the announcement with a social media post highlighting unrestricted passage through the critical waterway.

The decision came as part of a 10-day truce between Israel and Hezbollah in Lebanon, with Iranian Foreign Minister Abbas Araghchi stating that the strait is now open to all commercial vessels for the remainder of the ceasefire. The move aligns maritime security with de-escalation efforts along the Lebanon front, where recent skirmishes had threatened to disrupt broader talks over the wider conflict with Tehran.

Trump responded to the announcement, posting on social media:

"The Strait of IRAN is fully open and ready for full passage. THANK YOU!"

The White House suggested that a potential settlement with Iran could be reached within days. Trump indicated that talks might take place this weekend and hinted at a possible meeting between Israeli and Lebanese officials in Washington within two weeks.

For energy and macro traders, the reopening of the Strait of Hormuz eliminates the worst-case scenario that had loomed over crude oil and shipping markets since early March. Oil prices declined as war and blockade risk premia faded, contributing to a rally in risk assets like crypto and equities. Investors have consistently treated progress in Iran-related negotiations as a catalyst to increase risk exposure.

JUST IN: Bitcoin pumps above $77,000! pic.twitter.com/3s5zfuDK4z— Bitcoin Magazine (@BitcoinMagazine) April 17, 2026

Bitcoin Price Approaches Key Resistance as Short Sellers Brace for Potential Squeeze

Against this backdrop, bitcoin price has climbed back toward the $76,000–$78,000 resistance band, a level that capped rallies before February’s sharp correction to $60,000. Each attempt to break above this zone has encountered strong selling pressure, with a visible wall of offers just above the market and liquidation clusters for over-leveraged traders within a few hundred dollars of current prices.

Derivatives data shows that perpetual funding rates have turned negative across major exchanges, indicating that traders are paying to hold short positions at current levels. This structure suggests a market positioned against further upside, setting the stage for a potential short squeeze if the Hormuz catalyst and ceasefire narrative continue to attract fresh demand from both retail and institutional buyers.

Volatility around this resistance band has intensified. Intraday moves above $76,000 have repeatedly triggered waves of liquidations and rapid reversals as short sellers scramble to cover positions and opportunistic sellers fade rallies, according to Bitcoin Magazine Pro.

Market Sentiment Remains Cautious Despite Price Gains

Sentiment has not fully recovered in line with price action. Composite gauges and surveys continue to reflect "extreme fear," a lingering effect of the February drawdown and prior profit-taking. However, the latest geopolitical developments and the prospect of a fully operational Strait of Hormuz have injected fresh optimism into risk assets, including bitcoin.