Bitcoin (BTC) remains below $70,000 on Tuesday as traders weigh conflicting signals from a dramatic Trump ultimatum on Iran against reports of positive ceasefire talks.
An 8 PM ET deadline set by President Trump for Iran to reopen the Strait of Hormuz has turned Tuesday into a binary event for risk assets.
War Signals Pull BTC in Both Directions
Vice President JD Vance said Tuesday that the war would conclude “very shortly” and that military objectives had been completed.
Meanwhile, a senior U.S. official reportedly told Fox News that Washington is in direct contact with Tehran, describing the talks as “positive” with a possible breakthrough by the end of the day.
However, Trump posted a starkly different tone on Truth Social. He warned that “a whole civilization will die tonight” while claiming “Complete and Total Regime Change” had occurred.
The post referenced 47 years since Iran’s 1979 Islamic Revolution.
Former White House Communications Director Anthony Scaramucci called the statement a veiled nuclear strike threat.
Skeptics vs. Hawks Frame a Binary Trade
Not everyone reads Trump’s rhetoric at face value. Macro commentator Rational Aussie argued that the escalating language signals weak leverage, not genuine intent.
They predicted Trump would extend the deadline overnight and markets would rally on the reversal, a pattern traders have labeled “TACO Tuesday” for “Trump Always Chickens Out.”
Meanwhile, Iran is not backing down quietly. A senior Iranian source reportedly said that if the situation spirals out of control, Tehran’s allies would close the Bab el-Mandeb waterway.
That Red Sea chokepoint handles a significant share of Europe-bound shipping and is already vulnerable to Houthi disruption.
The Strait of Hormuz closure has already removed roughly 20% of global oil supply from the market, pushing Brent crude above $110 per barrel.
A simultaneous Bab el-Mandeb shutdown would compound that shock across energy, fertilizer, and shipping costs.
Bitcoin and Crude Oil Price Performances. Source: TradingViewWhat Comes Next for BTC
Bitcoin opened Tuesday at $68,860, down 0.2% from Monday. It briefly touched $68,200 before recovering and was trading for $68,392 as of this writing.
The Fear and Greed Index remains deep in extreme fear territory, where it has stayed for over a month.
- If the deadline passes without escalation, the “TACO” thesis holds, and a relief rally becomes likely.
- If strikes on civilian infrastructure proceed, further selling pressure and liquidation cascades could push BTC toward the $66,000 support zone tested last week.
Traders have a few hours left to find out which version of tonight they get.
The post Trump’s Ultimatum Splits Markets Between Nuclear Fear and “TACO Tuesday” appeared first on BeInCrypto.
Source: https://beincrypto.com/bitcoin-trump-iran-ultimatum-market-split/
