Bitcoin (BTC) remained firm this week, rising steadily from the beginning and briefly reclaiming the $73,000 level. The move was partly driven by developments surrounding negotiations between the United States and Iran over a ceasefire period.
Early in the week, uncertainty over the outcome of the talks kept geopolitical risks in the Middle East in focus. However, in the U.S. crude oil futures market, front-month WTI temporarily surged to the $115 range before pulling back. This eased concerns over excessive energy price inflation and helped support Bitcoin.
By midweek, BTC traded sideways as the end of the ceasefire deadline passed without a clear path toward a full resolution of the conflict. Toward the latter half of the week, however, the upward momentum strengthened once again.
Even after the U.S. and Iran agreed to a two-week ceasefire, Israeli attacks on Lebanon continued, and navigation through the Strait of Hormuz remained limited.
Amid these developments, reports that Bitcoin was being used in some cases to pay transit fees through the Strait of Hormuz drew market attention and supported buying interest. In addition, expectations that the Trump administration would extend measures allowing the purchase of Russian crude oil and petroleum products transported by sea contributed to renewed downward pressure on oil prices, further supporting the Bitcoin market.
